All states must power data centres with renewables: Bowen

Minister for climate change and energy Chris Bowen has said all state and territory, without exceptions, will need to power data centres through renewable energy.

Bowen added no special carve-outs will be given to specific states, and the government will legislate nationally consistent standards, which will require data centres to be run by renewables, with peaking and firming that can be done by gas.

"The only change is that if a state-owned energy company feels that they can power a data centre cheaper than with renewables, they can make that claim to the federal government. We'll have the Australian energy regulator look at it and assess it," he told ABC News.

"But the Commonwealth will decide that, not a state or territory. That's very clear."

He said in each case, companies will have to prove how, against every other situation, coal or gas is cheaper than renewables.

"It's a very high bar and needs to be. We're playing for very important stakes here. The energy used for these data centres is massive. We want to make sure that it doesn't put upward pressure on bills," Bowen said.

"We know if it was open slather in Queensland, they would just let data centres do whatever they want. The modelling shows it will push up energy bills, wholesale energy bills in Queensland, by 13%. That's not okay with us. We won't let that happen."

He added given renewables are the cheapest form of energy, the government wants data centres to bring forward new, additional renewable energy investment, not energy investment that was going to occur anyway.