Australia
Queensland allowed to use fossil fuels for data centres
The federal government has agreed to let Queensland power new data centres with fossil fuels despite a push toward renewable energy.
Queensland will be permitted to power its data centres using coal and gas, despite a federal push for the facilities to transition to renewable energy, according to a wire report.
The decision represents a significant shift from previous federal government demands, which required states to use renewable energy as a standard for the high-consuming digital facilities. The compromise allows Queensland to leverage its existing fossil fuel infrastructure.
The Queensland Premier welcomed the development, describing the agreement as a "good win" for the state. Queensland is in a unique position compared to other jurisdictions because the state government owns a large portion of its electricity infrastructure. This state ownership has been a key factor in the negotiations over energy transition and grid management.
Data centres require substantial and continuous amounts of electricity to power servers and cooling systems. The federal government had sought to ensure these facilities operated on green energy to help meet national climate targets. However, the requirement raised challenges for states balancing rapid technological growth with grid reliability.
Details of the agreement, including any potential time limits on the use of fossil fuels or specific emissions-reduction conditions, have not yet been made public. It remains unconfirmed whether other states will seek similar exemptions to support their own digital infrastructure.
The decision highlights the ongoing tension between rapid digital development and the transition to clean energy across Australia.
What to watch next is whether the federal government will face pressure from other states to ease renewable energy mandates for their own commercial developments.
This report draws on original reporting by Wire report.
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