Australia’s energy minister, Chris Bowen, says planned national rules will require datacentres in every state and territory to use 100% renewable electricity backed by firming, rejecting claims that Queensland and the Northern Territory secured broad exemptions. States may seek permission to use existing coal or gas supplies, but must convince the federal regulator that this would be cheaper than renewables; the issue matters because datacentre electricity demand is forecast to grow sharply and could affect energy prices and the transition away from fossil fuels.

Queensland and Northern Territory leaders had portrayed the national cabinet agreement as allowing greater use of their gas and state-controlled power systems, including Beetaloo basin gas, but Bowen said any exemption would be assessed individually by the Australian Energy Regulator. The Australian Energy Market Operator expects datacentre power use to rise seven-fold over the next decade, while new figures show Australia’s emissions fell 1.6% in the year to March 2026; emissions are now 25% below 2005 levels, against a 43% reduction target for 2030.