Climate Council says data centres need 100% renewables
Climate Change and Energy Minister Chris Bowen confirmed on 28 August 2026 that the Federal Government would legislate binding national standards for data centres across Australia without exception, requiring 100% renewables backed by firming.
The Climate Council welcomed that position because it contradicted claims from the Northern Territory and Queensland governments that some jurisdictions could receive carve-outs.
However, after the National Cabinet meeting in the same week, Bowen also clarified that the rules would allow state-owned fossil fuel assets to make a case-by-case argument to power data centres with fossil fuels.
According to the Climate Council, that exception creates uncertainty and risk for communities even though renewables are the cheapest form of power and have been driving prices down.
At least 225 data centre proposals are now in the pipeline in Australia. The Climate Council argues the country cannot afford to let the sector run on anything less than 100% additional renewables.
225 proposals raise power price concerns
Research cited by the organisation shows fossil-fuelled data centres would drive wholesale power prices up by more than 20% over the next 10 years.
It says the way governments turn Bowen’s announcement into law and day-to-day practice will shape Australia’s power bills and climate pollution for a generation.
Climate Council chief executive Amanda McKenzie said: “Australians are looking to governments to get this right. There’s a lot on the line, our energy security, the price of power and how much harmful climate pollution we lock in.”
McKenzie argued that renewable energy is already the cheapest and fastest option to build. She said the key test is whether data centres bring genuinely new clean energy or soak up supply that households and businesses already need.
She also called for clear and consistent national standards that deliver additional renewable energy without any exceptions, warning that this is the only way to avoid higher power prices and more pollution.
Meanwhile, the Climate Council says matching all new demand with new renewables would help avoid delaying the retirement of ageing coal power stations and reduce reliance on gas, which it describes as polluting and expensive.
McKenzie said Australia has “one shot” to avoid the negative impacts linked to unchecked data centre growth in other countries.
The Climate Council did not say when the legislation would be introduced, how the case-by-case process would work, or which state-owned fossil fuel assets could seek approval under the proposed rules.
