We Need Gas and Small Nuclear to Power AI Data Centres
Australian Financial Review
ENRICHED
Details
- Date Published
- 2 Feb 2026
- Priority Score
- 2
- Australian
- Yes
- Created
- 2 Feb 2026, 05:45 am
Description
There are two things we can do rapidly and easily to expedite new sources of replacement baseload power as coal closes.
Summary
The article argues for the use of gas and small nuclear reactors to support Australia's energy transition, especially as coal plants close and AI data centers require reliable baseload power. It highlights challenges such as increased construction costs and technical instability of the grid, which complicate the transition to a fully renewable energy grid. The discussion is pertinent to global energy strategies as it touches on the reliability of power sources vital for advanced technological infrastructures, including those driven by AI. However, it mainly focuses on energy policy rather than AI safety, and its primary contribution lies in energy planning aspects rather than addressing catastrophic AI risks directly.
Body
TechnologyEnergy transitionPrint articleFeb 2, 2026 – 4.00pmDespite some recent successes, Australia’s energy transition will take longer than originally anticipated.Increased construction costs, technical instability in our grid, differing appetite for change, and diverse stakeholder and voter views all present challenges to Australia’s unique ambition of effectively being the only jurisdiction in the world to seek a fully intermittent renewable generation grid.Loading...Alexander Danne is Partner & Head of Energy, Clayton UtzSaveLog 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 MoreEnergy transitionOpinionEnergy securityEnergy pricesNuclear energyGasEnergy storageRenewablesFetching latest articles