South Australia backs gas power for AI data centres despite renewables strategy

The South Australian Government will allow gas-fired power to supply proposed AI data centres in the state, Energy Minister Tom Koutsantonis told the ABC. "We support the idea of gas use to firm data centres the same way we support the idea of gas firming our renewable energy right now," he said, arguing that data centres need power around the clock when wind and solar drop.

The state's Data Centre Strategy, released just under five months ago, centred on renewable energy. The Greens called the decision a "total backflip" and proposed a moratorium on data centre construction, and the Conservation Foundation of SA called it "a step backwards." The Liberals, One Nation and the Greens joined in the upper house to set up a parliamentary inquiry into data centres. Koutsantonis said that without gas, operators would "use diesel or they'll use coal."

The comments came a day after Quantum DC paused its plan for a 1,200-megawatt data centre at Tungkillo in the Adelaide Hills, which would have drawn about 20% of its power from an on-site gas plant. IREN has proposed an 800-megawatt facility near Robertstown and Firmus has announced sites near Tailem Bend and Port Augusta. The government is preparing dedicated legislation to regulate AI data centres, which it plans to introduce this year.