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AI Data Centre Boom Sparks Brawl Over Using Nuclear Energy for Computing Power

The Australian Financial Review

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Date Published
25 Aug 2026
Priority Score
2
Australian
Yes
Created
25 Aug 2026, 08:01 am

Authors (1)

Description

Coalition frontbencher Jonno Duniam’s plan to consider using small reactors to power data centres is an “ideological fantasy”, say Labor ministers.

Summary

This article examines the political debate in Australia regarding the use of small modular nuclear reactors (SMRs) to meet the exponential energy demands of AI data centres. While focused on energy infrastructure, the discourse highlights the massive scale of frontier AI physical requirements and the resulting pressure on national power grids. The debate between renewable-led hubs and nuclear-powered computing centers addresses how Australia manages the infrastructure risks associated with rapid AI capability expansion. The outcome of this policy clash will likely shape Australia's long-term capacity to host and govern high-compute frontier AI systems.

Body

PoliticsFederalData centresPrint articleRonald MizenPolitical correspondentAug 25, 2026 – 5.25pmA political fight has broken out over using small modular nuclear reactors to meet the soaring electricity demand from data centres, and new research shows that using renewable power could make Australia a regional hub for low-carbon computing power capacity.On Monday, Coalition frontbencher Jonno Duniam said using SMRs to power data centres should be part of the conversation, and the government should end the moratorium on nuclear power.Loading...SaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleRead MoreData centresAIChris BowenAnalysisJonno DuniamAnthony AlbaneseFetching latest articles