No Fossil Fuel Exemption for Data Centres

Under the federal government's new national laws regarding data centre energy supply in Australia, it has been reported that no special fossil fuel exemptions will be provided to any state, including Queensland and the Northern Territory.

Fossil Fuel Usage Conditions

States wishing to use coal and gas will be required to prove their requests to the national regulator. The only consensus reached at the national cabinet meeting is that existing coal and gas supplies can be used provided it is proven that they are cheaper than renewable energy.

National Cabinet and Prime Minister's View

Prime Minister Anthony Albanese stated that the new national boards will mandate the use of renewable energy and ensure that data centres do not drive up prices for households and businesses.

State Demands and Minister's Statements

Northern Territory Chief Minister Lia Finocchiaro and Queensland Premier David Crisafulli claimed after the meeting that they had secured wins for their respective regions. However, Energy Minister Chris Bowen explicitly stated that no preferential exemptions will be granted to any state or territory.

The Regulator's Role

The Australian Energy Regulator will be responsible for reviewing each application, and state governments will have to prove that the non-renewable option is cheaper.

Change in Carbon Emissions

In a separate development, Energy Minister Bowen released Australia's quarterly emissions data to the public. According to the disclosed data, the country's emissions recorded a 1.6% decrease in the annual period leading up to March 2026.