Federal officials have raised alarms about the potential impact of artificial intelligence (AI) data centres on household and business power bills, warning that reliance on coal or gas energy sources could drive up electricity costs. Cabinet Secretary and Assistant Minister for Science, Technology and the Digital Economy Andrew Charlton made these remarks during an interview with The Conversation’s politics podcast ahead of a key National Cabinet meeting on AI policy. His comments come amid growing public concern over the environmental and social effects of expanding data centre operations across Australia. Charlton emphasized that the government is seeking to ensure that new data centres are powered entirely by renewable energy, rather than relying on existing fossil fuel-based energy sources such as coal or gas. He explained that if data centres were allowed to draw power from these finite resources, they would compete with households and businesses for limited supply, leading to increased energy prices. This competition, he argued, could place undue financial strain on ordinary Australians. The minister highlighted the importance of requiring data centres to generate additional renewable energy beyond current levels, thus avoiding upward pressure on energy markets. However, recent developments suggest that the government’s stance may not be fully enforced. At a National Cabinet meeting held earlier in the week, Queensland and the Northern Territory secured an exemption allowing their data centres to operate using coal and gas energy sources. This decision appears to contradict earlier warnings from Federal Energy Minister Chris Bowen, who had indicated a willingness to override states that failed to commit to renewable-powered data centres. Charlton acknowledged the legitimacy of public concerns regarding data centres, citing examples from the United States where unchecked growth of such facilities led to severe consequences for local communities. In particular, he referenced instances where rising energy costs and disruptions to water supplies occurred following the rapid deployment of data centres in certain regions. These issues, he noted, underscored the need for careful planning and regulation to prevent similar outcomes in Australia. Residents living near existing data centres have expressed frustration over the lack of protections and the ongoing challenges they face. Sean Brown, a resident of West Footscray in Melbourne, described the experience of living close to one of the country’s largest data centres, NextDC’s M3 facility. Located just 300 meters from his home, the facility emits a constant hum audible even from a distance, accompanied by ongoing construction activity that causes frequent disruptions. Brown recounted incidents where entire streets lost power for extended periods without prior notice or compensation. The M3 site, branded as "Australia’s largest hyperscale AI factory," is scheduled to expand significantly by 2027, increasing its footprint to 10 hectares and consuming 225 megawatts of power continuously. A second facility, the Perri Melbourne Data Centre (PMDC), has also been approved for development in the same neighborhood. With 162 operational data centres already in existence and 90 more under consideration, the scale of expansion raises questions about how existing communities will be impacted. Prime Minister Anthony Albanese recently announced new national guidelines aimed at preventing future data centres from being constructed near residential areas, schools, or prime agricultural land. Developers will be required to contribute more renewable energy to the grid than their data centres consume, minimize water usage, and ensure that new sites are appropriately sized and located. Albanese stressed the importance of maintaining public support for data centre investments by ensuring that energy costs remain stable and water security is preserved. Despite these new regulations, residents like Brown argue that the measures fail to address the existing challenges faced by communities already living adjacent to data centres. They contend that the policies must extend to current facilities, not just future developments, to provide meaningful relief. Without such action, they fear that the burden on affected neighborhoods will continue to grow, leaving residents feeling overlooked and powerless in the face of rapid industrial expansion.
★
Ohranimo novice poštene.
ObjectiveNews financirajo bralci in je brez oglasov – pristranskost vam pokažemo, ne skrijemo. Podprite neodvisno novinarstvo za 4 €/mesec.
Postani podpornik