The Northern Territory government has firmly rejected the federal government’s proposed national renewable energy offset policy for data centres, calling for a ‘Territory-first approach’ that accounts for the region’s unique energy profile.
Northern Territory Minister for Mining and Energy Gerard Maley argued the draft policy, spearheaded by Climate Change and Energy Minister Chris Bowen, is tailored for eastern states struggling with grid capacity, rather than the Territory’s specific economic opportunities.
Unlike the eastern seaboard, the Northern Territory is not part of the National Electricity Market (NEM). Minister Maley noted that many major data centre proponents looking at the NT intend to use off-grid, standalone power models combining solar energy with reliable gas generation.
“The Northern Territory is in a fundamentally different position to the eastern states,” Maley said.
“We have abundant gas resources, significant development opportunities, and the capacity to deliver reliable and affordable energy while supporting major new investment.”
The NT government warned against applying a ‘one-size-fits-all’ framework that could inadvertently penalise digital infrastructure investments.
Instead, the Territory is urging the federal government to support piping gas from the Beetaloo Basin to the domestic market, arguing that it would strengthen national energy security while meeting strict federal emissions-reduction standards under the Safeguard Mechanism.
Maley emphasised that bringing new Beetaloo gas online would directly support the Commonwealth’s target of a 20 per cent Domestic Gas Reservation Scheme without putting upward pressure on household electricity bills.
“Let’s not demonise data centres. These facilities are critical to the digital services Australians use every day, can help deliver sovereign digital capability here in Australia, and have the potential to bring more jobs to the Territory,” Maley said.
“Data centres should be encouraged to develop in locations where there are no energy shortages and where there is capacity for growth. That place is right here in the Northern Territory.”
