Queensland and the Northern Territory (NT) appear to have secured greater flexibility over how they power new data centres under proposed national rules.
Earlier in August, Energy Minister Chris Bowen said the federal Labor government would press ahead with plans for national standards on data centres.
As part of those plans, new large-scale data centres would be required to underwrite additional power supply, pay their full share of grid costs and put at least as much energy into the grid as they consume.
The government said the additional electricity supply would include renewable generation backed by firming capacity.
However, the Queensland and NT governments rejected the notion of a uniform approach, which Queensland Treasurer David Janetzki called “federal overreach”.
Both jurisdictions cited their energy resources in arguing for greater flexibility over how data centres are powered, including the use of coal and gas in Queensland and gas in the Northern Territory.
During a conference following a National Cabinet meeting on Aug. 26, Prime Minister Anthony Albanese acknowledged Queensland and the NT were “in different positions from other states.”
He also said the federal government would still set the rules, while allowing flexibility for differences between states.
“In Queensland, you have public ownership of power generation, transmission, and distribution,” Albanese said. “So, if there is surplus, then that, of course, could be available.
“But we want to make sure as well that the principles are very clear. the Commonwealth will legislate, and we have the power under the corporation’s power to do so.
“And I’m very confident that we’ll move forward with every single jurisdiction, making a difference.”
Crisafulli called the meeting “productive,” saying it was conducted “in good spirits.”
“In the state of Queensland, we’ve got a really big point of difference, and that is that we own distribution, transmission, generation, and that enables us to control that energy mix, and we’ve done that well,” he said.
“And our energy plan shows that. So, what this does is enables us to send messages, and states can absolutely participate… each state will have a point of difference.”
Queensland Treasurer David Janetzki on Aug. 27 that Queensland was not ruling out one form of power over another.
“We certainly are supportive of the renewable sector in Queensland,” he told ABC Radio.
“We do believe there’ll be a role for gas peaking.
“Coal generation in Queensland remains reliable and strong. So there will be a role for all energy sources as the data centre industry moves forward.”
But the development was not welcomed by everyone.
Independent Senator David Pocock criticised the outcome, arguing it amounted to Queensland being carved out of the proposed national rules.
“We were promised national standards and then a state as big as Queensland is carved out of new data centre rules?” he wrote on social media.
“We have a national electricity market on the east coast so what does that mean for the potential to push up prices in other states?
“Disappointing that after promising national standards the PM has backed down—and there’s still no talk of capturing long-term benefits from these data centres. What’s the ongoing benefit after the build phase?”
