Data centre growth without rules could lift power prices

Queensland wholesale power prices could rise by 14% by 2035 if data centres expand without renewable energy requirements, a Climate Council report released on 8 July 2026 found.

The report, titled Clouded Future, projected larger rises in other states. It forecast wholesale prices up to 26% higher in NSW and 23% higher in Victoria by 2035 under the same scenario.

Climate Council tied the forecast to a Queensland Government push to let data centres expand without rules that require new renewable energy.

All other state and federal energy ministers had called for national regulation of renewable energy requirements for the data centre boom.

Meanwhile, the report warned that rising electricity demand from data centres would also lift climate pollution without intervention. That added risk comes as Queenslanders and other Australians face floods, fires and extreme weather.

Clouded Future report

Climate Council CEO Amanda McKenzie pointed to the United States as a warning. “In the US unchecked data centre growth has led to massive spikes in power prices and damage to public water resources. Queensland has the opportunity to do things differently.”

She argued that requiring big tech companies to build new renewable power would protect grid reliability and affordability.

Without clear rules, extra demand from new data centres would draw on the wider market and push up wholesale prices by 2035.

McKenzie claimed the main risk for consumers was that data centres could avoid paying for new supply while power prices and pollution rose.

She added: “Putting the community first means requiring data centres to build new renewable energy and protect our water resources.”

The Climate Council release carried a FOR IMMEDIATE RELEASE label and the date 8 July 2026.