Climate Council backs Albanese pledge on 15 July 2026
New Australian data centres should match their power demand with new renewable energy and storage from the start, after Prime Minister Anthony Albanese announced a new Office of AI on 15 July 2026.
Climate Council backed the new office on 15 July 2026 but urged it to enforce national standards for the fast-growing AI and data centre sector. According to the group, those rules will decide whether households avoid higher power bills and added climate pollution.
In Queensland, the state government is threatening to let data centres expand without renewable energy requirements. Climate Council warned that such a move could trigger a state-by-state race to the bottom for new projects.
As a result, Australians could pay more for electricity while emissions rise. The group also linked extra fossil fuel use to worsening fires, floods and heatwaves.
Amanda McKenzie on guardrails
Chief executive Amanda McKenzie said unchecked growth could hit both the power system and family budgets. “The AI-driven surge in data centres will have a profound effect on our energy system, and unchecked, this growth could mean soaring prices and rampant climate pollution,” McKenzie said.
She urged the federal government to regulate data centre growth in Australians’ interests. That includes enforcing Albanese’s pledge that new projects add fresh renewable generation and storage instead of leaning on the existing grid.
On 15 July 2026, the GenCost report again found that solar and wind form the backbone of Australia’s lowest-cost energy mix. However, McKenzie argued that rapid data centre growth could delay that shift if governments do not set firm guardrails.
Australia is an attractive market for data centre developers, which Climate Council says makes national standards more urgent. Since power prices and climate pollution could surge over the next decade without intervention, the group wants the matching rule to apply from the get-go.
McKenzie framed new renewables and storage as protection for households and other businesses facing higher costs. “Accelerating the roll-out of proven renewable energy is the only way to keep prices as low as possible, ensure grid stability, and slash climate pollution to better protect our communities, economy and environment from worsening climate disasters.”
It provides evidence-based information on climate change impacts and solutions to journalists, policymakers and the wider Australian community.
Further information appears at climatecouncil.org.au.
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