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Opposing the government's push for data centres to become net energy generators

Published July 29, 2026 at 6:02 AM UTC

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Opponents of the government's proposal, particularly the Queensland Government, have raised concerns about the potential economic implications of mandating data centres to become net energy generators. They argue that such a policy could lead to increased power prices and pollution, potentially burdening consumers and businesses.

The Climate Council's 'Clouded Future' report indicates that without appropriate requirements for data centres to power their growth with renewable energy, wholesale power prices could rise by up to 26% in NSW, 23% in Victoria, and 14% in Queensland by 2035. This projection suggests that the policy could have unintended economic consequences, affecting the affordability of electricity for households and businesses.

Additionally, there are apprehensions about the feasibility of implementing such a policy. Critics question whether data centres have the capacity to secure their own clean energy sources and whether the infrastructure required to support this transition is readily available. There are also concerns about the potential impact on the competitiveness of the Australian data centre industry in the global market.

In summary, opponents caution that while the intention behind the policy is to promote sustainability, its implementation could have adverse economic effects and may not be the most effective strategy for managing energy consumption in the data centre sector.