PM’s data centre backflip is a climate and energy disaster

2026-08-27

The Australian Greens have slammed the Federal Government’s National Cabinet agreement to allow coal and gas to power big AI data centres, and have called for an urgent moratorium while new standards are. being developed. 

Quotes attributable to Greens spokesperson for Environment & Communications, Senator Sarah Hanson-Young: 

“The Prime Minister has caved into the fossil fuel industry and big tech at the first hurdle.

“This is a data centre disaster.

“Instead of ensuring strong rules are in place to regulate big AI data centres and drive investment in clean, reliable power, Labor has opened the door to more gas, more pollution and a fossil fuel free-for-all.

“Yesterday’s capitulation to the fossil fuel lobby, shows Labor is already going weak in developing rules to regulate big AI companies setting up shop here in Australia.

“The decision is a recipe for higher energy prices, greater pressure on the grid and an increased risk of instability and blackouts. 

“Labor has sold out communities who are rightly concerned about what sprawling, energy-hungry data centres will mean for their water, environment and neighbourhoods.

“This capitulation will mean more pollution and higher household bills, so big US tech companies can power their energy and water hungry data centres, with little concern for the environment or local communities.

“The Prime Minister has also thrown his own Climate Change and Energy Minister, Chris Bowen, under the bus. After endless promises of renewable energy leadership, Labor is now walking away at the first sign of pressure from the gas lobby and state governments. 

“Without strong laws to force data centre operators to use only renewable energy, the data centre boom will drive up power prices, supercharge pollution and leave Australians worse off.

“The division at National Cabinet shows exactly why we need a moratorium on the approval and development of hyperscale data centres while the essential policy work is done to get the rules right.

“Politicians are being so bamboozled by big tech companies and the promise of an AI gold rush they are putting corporate interests of big tech and fossil fuels ahead of the national interest. 

“The Prime Minister must reverse this reckless capitulation and put enforceable renewable energy, environmental and community protection requirements back on the table. If he doesn’t, the Greens will move for it and demand it in the Senate.

“This is what happens when you put political convenience ahead of the climate, the energy transition and community trust.”