House debates Questions without Notice

Data Centres

Thursday, 29 October 2026 House of Representatives

Monique Ryan

Monique Ryan Kooyong, Independent

2:14 pm

My question is to the Prime Minister. Australia is the largest seaborne importer of diesel in the world. Many of our data centres are powered by backup diesel generation. That adds more sovereign risk and cost to a vulnerable supply chain. Most communities want any new data centres to be powered by 100 per cent renewable energy. Will the government legislate to ensure that new data centres are not permitted to use expensive, polluting backup diesel generators?

Anthony Albanese

Anthony Albanese Grayndler, Australian Labor Party, Prime Minister

I thank the member for her question. The minister will supplement the answer. We are very determined to develop AI standards which are for Australia and which are world's best practice. That includes making sure that we deal with issues such as energy, water and location to make sure that it truly serves Australia's national interest. AI can drive our productivity and can make an enormous difference for Australia given the comparative advantage that we have in this country. One of the issues we have to deal with—and it's being dealt with as well by the committee that's dealing with it across the parliament—is the issue of energy, and I'd ask the minister to supplement.

Chris Bowen

Chris Bowen McMahon, Australian Labor Party, Minister for Climate Change and Energy

2:15 pm

As the Prime Minister has indicated, we are absolutely determined to make sure that the very significant pipeline of data centre investment in Australia is in the best interests of Australians, and that means ensuring that these data centres bring their own new energy. That energy should be the cheapest form of energy, which we all agree with and which is a good thing, and I'm sure honourable members will therefore agree with the approach of the government. The approach of the government, agreed through the energy ministers council, is to send a rule change to the Australian Energy Market Commission, which has gone. If it's approved by the Australian Energy Market Commission, it will require new data centres to bring their own new energy with a particular focus on renewable energy, with, as I'm sure honourable members would agree, gas as an appropriate peaking and firming facility. It's a sensible approach.

Unidentified interjection - Hansard doesn't record who said this

Opposition Members:

Opposition members interjecting—

Milton Dick

Milton Dick Speaker

Order! Members on my left will cease interjecting.

Chris Bowen

Chris Bowen McMahon, Australian Labor Party, Minister for Climate Change and Energy

I apologise; I've triggered them. That's my fault, Mr Speaker. We will continue to work through the consultation paper that the Prime Minister has released on AI standards. He's very clear about our approach, as is the rule change and as is the legislation that the government has made clear we are developing, which will make its way through the House in due course.