South Australia allows gas for data centres — ABC News Australia
The South Australian government has allowed the use of gas generation to supply electricity to planned large data centres, including facilities for artificial intelligence systems. State Energy Minister Tom Koutsantonis said gas could serve as a backup power source when solar and wind generation do not provide the required volumes. ABC News Australia reports.
Gas as a backup source
According to Koutsantonis, data centres require a large and uninterrupted volume of electricity. He compared the potential use of gas for such facilities with the current role of gas generation in supporting the state's renewable energy system.
South Australia's data centre development strategy, published less than five months ago, focused on renewable energy. The document stipulates that new data centres must provide their own electricity supply.
Quantum DC, which has paused plans to build a 1,200 MW data centre in Tangkillo, had previously estimated that a gas-fired power plant on its 220-hectare site in the Adelaide Hills would cover about 20% of the facility's needs. The company planned to obtain the remaining electricity from renewable sources.
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Criticism and other projects
Conservation Foundation of SA chair Kirsty Bevan called the use of gas a step backwards for the state's climate policy. She noted that South Australia aims to achieve 100% net renewable electricity by 2027, while energy storage and other backup technologies are available for grid stability.
South Australian Greens leader Rob Simms also criticised the government's position and called for the approach to be reconsidered. He proposed introducing a moratorium on data centre construction in the state. The Liberals, One Nation and the Greens supported a pause on the Tangkillo project and joined forces in the upper house of parliament to establish a parliamentary inquiry into data centres.
Meanwhile, Belinda Dennett, chief executive of the industry organisation Data Centres Australia, said renewable energy would continue to play a significant role in supplying new facilities. Projects for Iren data centres near Robertstown, as well as Firmus facilities near Tailem Bend and Port Augusta, are also being considered in South Australia. State authorities are preparing a regulatory framework for AI data centres, and a separate bill is planned to be introduced to parliament this year.
