Albanese backs down on states powering AI datacentres using renewable energy
TL;DR
Shift comes after Chris Bowen said Labor would use constitutional powers to override states resisting rules on sustainable energy Get our breaking news email, free app or daily news podcast Anthony Albanese has backed down on demands that states must power new AI datacentres entirely using renewable energy, with Wednesday’s meeting of national cabinet flagging carveouts for jurisdictions including Queensland and the Northern Territory. The prime minister welcomed the “positive and constructive” discussions in Sydney, but opened the door to a flexible approach under new nationally consistent standards to deal with AI development, including for governments with state-owned power systems.
Nauti's Take
The retreat has a practical advantage: consistent standards with carve-outs get agreed faster than a constitutional fight, and AI datacentres need planning certainty now. The risk is dilution, because exemptions for Queensland and the Northern Territory can shape the sector's power mix for years.
For operators that means site selection becomes the climate lever, not federal policy.
Sources