Australia Warns Gas-Powered Data Centres May Breach Rules
Australia’s Energy Minister Chris Bowen has raised concerns over the Northern Territory’s plan to power large-scale data centres using shale gas, stating that such proposals may conflict with upcoming national energy standards.
His remarks cast uncertainty over the Territory’s ambition to attract multi-billion dollar technology investments.
Bowen emphasized that new federal policies would require data centres to generate their own renewable energy rather than relying on existing grid power or fossil fuel-based sources.
Under these proposed rules, facilities powered solely by gas would fail to meet minimum national standards and would not be eligible for registration. The policy framework also includes the issuance of renewable energy certificates to ensure compliance with sustainability goals.
The Northern Territory, along with Queensland, has supported the use of gas-fired power to meet the growing energy demands of data centres. However, Bowen’s stance signals a clear shift toward prioritizing renewable energy in Australia’s digital infrastructure expansion.
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The debate comes as the Northern Territory recently allocated 185 hectares of land near Darwin to Beetaloo Digital for the development of a 2-gigawatt data centre.
The project is expected to be powered by shale gas from the Beetaloo sub-Basin, with estimates suggesting that generating one gigawatt of power would require approximately 200 terajoules of gas per day.
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This is significantly higher than other projects, such as Shell’s coal seam gas development in Queensland, which is projected to produce 84 terajoules daily.
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While Beetaloo Energy has indicated that gas could complement planned solar and battery storage infrastructure, it has not clarified the proportion of renewable energy to be used. Bowen’s comments highlight the growing tension between energy policy and investment ambitions, as Australia pushes for a cleaner, more sustainable digital economy.