Bowen: No Fossil Fuel Carve-Out for States Powering Datacentres
Bowen: No Fossil Fuel Carve-Out for Datacentre Power

Climate Change and Energy Minister Chris Bowen has insisted there will be no special carve-out for states using fossil fuels to power datacentres, despite new conditions being introduced for the sector.

New Conditions for Datacentre Power

Bowen's comments come after the government announced it would impose new conditions on datacentre developments, aiming to ensure they align with Australia's emissions reduction targets. The minister said the conditions would not allow states to bypass national climate commitments by relying on fossil fuel-generated electricity for these facilities.

Government's Stance on Emissions

The minister emphasised that all states would be expected to adhere to the same standards when it comes to powering datacentres, which have become a growing source of energy demand. He said the government was committed to ensuring the rapid growth of the digital economy did not undermine its climate goals.

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Bowen's remarks follow concerns that some states might seek to attract datacentre investment by offering cheaper, fossil fuel-based energy options, potentially increasing emissions. The new conditions are designed to prevent such outcomes while still supporting the industry's expansion.

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