The Climate Council welcomes today’s newly released Federal Government consultation paper on national standards for data centres as the starting point for providing additional clean energy and protecting Australians from escalating climate harms. However, a lack of detail on how significant climate pollution will be prevented remains a missing piece.
The Good:
Amanda McKenzie, CEO Climate Council said:
"Climate Council welcomes the government again confirming that data centres will be required to bring on new renewables and firming to fully offset their demand. This will be mandatory, not voluntary. Strong national standards are critical to protect Australians from data centre energy demand pushing up power prices and pollution.
“We know that if new data centres simply draw on the grid it will extend the life of old coal power and increase gas generation, pushing up power prices by more than 20 percent on average in our main grid. Urgently bringing on additional renewables to power data centres is crucial to protect Australians from power price and pollution spikes.”
The Bad:
“We are concerned that climate pollution barely rates a mention. When a single project can be equivalent to putting 2 million cars on the road, Australians need strong assurance that the climate risks from these projects will be well managed.
“The data centre rules must align with Australia’s climate laws to ensure they support the renewable transition, rather than undermining it."
The questionable:
“Currently we don’t know when the law will apply from – leaving open a massive loophole for the 225 data centres already in the pipeline that could lock in more expensive and polluting coal and gas generation. It’s critical that the law applies to all new data centres, including those already in the pipeline, to protect communities from rising costs and worsening climate harm.
"Data centres should also be banned from building new off-grid fossil fuel generation as a primary power source, including while they wait for new renewable generation to come online.
“How we manage this industry will shape our energy system – and climate – for decades to come. This is the time to get the laws right to protect Australians."
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