Northern Territory government minister Josh Burgoyne has accused the Commonwealth of “overreach”, after the federal government said it would block the development of gas-powered data centres.
The federal government plans to mandate the use of renewables and establish a national renewable energy offset policy for data centres, but this has been rejected by the NT and Queensland.
Federal Energy Minister Chris Bowen yesterday said the new laws would not permit any data centre proposal which relied entirely on gas, even if it overruled state or territory approvals.
“If a data centre is proposed to only use gas, it will not meet the minimum national standards. And, it won’t be able to register and it won’t be able to proceed,” he said.
Chris Bowen made his comments while speaking at the National Press Club. (ABC News: Dave Sciasci)
The NT government supports a gas-fired data centre boom, powered by the development of gas fields in the Beetaloo Basin, and Mr Burgoyne told the Country Hour the NT should be left to govern itself.
“It’s federal government overreach, in the Territory we have a right to govern ourselves,” he said.
“What they are doing is overstepping into our territory and basically telling Territorians what they can and can’t do.
“We had a competitive advantage that we were going to take advantage of, and the federal government is trying to take that away.”
Mr Burgoyne’s portfolios include lands, planning and environment, as well as corporate and digital development.
Mr Bowen said gas could play a role as a firming option, to provide consistent electricity to the facilities.
“I don’t want to appear as too antagonistic towards the NT government,” he said.
“The requirements are renewable energy, then sensible firming arrangements.”
Gas company’s AI plan
Beetaloo Digital’s Alex Underwood inspects plans for a data centre near Darwin with NT ministers Josh Burgoyne and Gerard Maley. (ABC News: Sam Parry)
The NT government recently set aside land near Darwin for a $40 billion project proposed by Beetaloo Digital, a subsidiary of gas company Beetaloo Energy.
Deputy Prime Minister Richard Marles, speaking today in Darwin, said the federal government was committed to a nationally consistent approach to regulating the fledgling industry.
Shadow Energy Minister Dan Tehan said the federal government should not force data centres to get their power from renewables, and developers should be able to choose their own energy mix.
“The Beetaloo Basin [is an] incredibly important gas resource for this nation … why can’t they use the gas in that resource?” he said.
When announcing Beetaloo Digital’s proposal for Darwin’s rural area, managing director Alex Underwood said it could partner with renewable projects, but did not say to what extent.