Australia’s federal government is moving forward with strict new rules for datacenters—mandating they use renewable energy and cover their own grid connection costs—to prevent runaway electricity demand and soaring bills. But Queensland and the Northern Territory are pushing back, calling the proposals “underdeveloped” and unfair, arguing they can deliver clean energy without federal interference. With S&P Global warning datacenters could consume five times more power by 2035, the government is also exploring consumer protections and leveraging energy market powers to enforce compliance. The goal? To harness AI’s growth without wrecking the grid or the wallet—but state tensions could slow progress.
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