The Australian government intends to impose national energy standards on AI data centres at this week’s National Cabinet meeting even though Queensland will not agree to them, a shift from the consensus approach that stalled when Queensland and the Northern Territory rejected most of the framework in July.
The policy requires large facilities to buy power from newly built renewable projects rather than drawing on the existing grid.
The design is what officials call causer pays. If a data centre creates new demand, it funds the new generation to meet it, rather than competing with households for supply that already exists and pushing prices up in the process.
Energy Minister Chris Bowen has indicated the Commonwealth will legislate federal standards whether or not the states sign up. That is a meaningful change, because the original framework was built to require unanimity and therefore handed every state and territory a veto.
The Coalition has gone straight at the mechanism rather than the merits. “How is Chris Bowen going to nationalise this?” asked shadow energy minister Dan Tehan, suggesting the government may try to rely on the corporations power and inviting a constitutional challenge.
