Australian Government Speeds Up Data Centre Approvals as OECD Flags Energy Strain
Australian Financial Review
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Details
- Date Published
- 26 Jan 2026
- Priority Score
- 2
- Australian
- Yes
- Created
- 27 Jan 2026, 03:30 am
Description
The global body said the cloud computing boom meant Canberra would need to make additional efforts to meet its 2050 net zero carbon emissions target.
Summary
In response to the OECD's warning about the growing energy consumption of data centers potentially hampering Australia's net zero goals, the Albanese government is accelerating the approval process for new data centers. The move aims to attract investment without subsidies while enforcing sustainability and renewable energy benchmarks. This decision highlights the intersection of infrastructure development and environmental policy amidst the global artificial intelligence boom, although it does not directly address catastrophic AI risks. Rather than a focus on AI safety, the article underscores the challenges of balancing technological advancement with national energy and climate goals.
Body
PoliticsFederalData centresPrint articleMichael ReadForeign affairs and defence correspondentJan 26, 2026 – 5.58pmThe Albanese government will streamline approvals to attract power-hungry data centres rather than offer subsidies, as the OECD warns the sector’s growing energy use threatens to derail Australia’s progress to net zero.As the artificial intelligence boom drives a global wave of data centre investment, Industry Minister Tim Ayres and Assistant Science Minister Andrew Charlton are finalising national data centre principles with the states that will require projects to meet sustainability and renewable energy benchmarks to qualify for co-ordinated approvals.Loading...Michael Read is the foreign affairs and defence correspondent, reporting from Parliament House, Canberra. He was formerly economics correspondent. He joined the Financial Review in 2021 from the Reserve Bank of Australia. Reach Michael securely @michaelread.14 on Signal. Email Michael at michael.read@afr.comSaveLog 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 articleFollow the topics, people and companies that matter to you.Find out moreRead MoreData centresCloudData Centre Gold RushIndustrialEnergy transitionEnergy securityAIFetching latest articles