Federal Energy Minister Chris Bowen has clarified the government's stance on energy requirements for the rapidly expanding datacenter sector. Following a recent national cabinet meeting, Bowen stated that there will be no blanket 'carve-outs' for states like Queensland and the Northern Territory that may wish to rely on coal or gas to power these facilities.

While Prime Minister Anthony Albanese and the federal government are pushing for national standards, the current policy allows for a limited concession. States may utilize existing coal and gas supplies for datacenters, but only if they can demonstrate to the national regulator that these fossil fuel sources are cheaper than available renewable energy options. This requirement places the burden of proof on the states to justify fossil fuel reliance rather than granting them an automatic pass.

This decision comes as the federal government prepares to debate new national laws aimed at regulating the power supply for the tech industry. The policy reflects a tension between state-level economic development goals and federal commitments to transition toward cleaner energy sources. While the government remains firm on the lack of special exemptions, the provision for cost-comparison leaves a narrow path for states to argue for traditional energy usage if they can prove a clear financial benefit over green alternatives.