SA gives green light for gas to help power future data centres

The South Australian government has been accused of doing a "backflip" by allowing gas-generated power to be used to supply energy for proposed AI data centres.Energy Minister Tom Koutsantonis has told the ABC that he was "absolutely fine" with gas being used to help run the new large-scale centres that are proposed in various regional locations around the state."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," Mr Koutsantonis said.The government's own Data Centre Strategy, released just under five months ago, focused on the promotion of the state's renewable energy sector.That strategy document stated: "South Australia can produce the clean energy needed, at scale and on time, to power the artificial intelligence revolution".But Mr Koutsantonis said that data centres needed large amounts of energy continuously, and that gas could be used to "firm" up or guarantee ongoing electricity to data centres "if the sun stops shining or wind stops blowing".Tom Koutsantonis says gas would guarantee ongoing electricity to data centres. (ABC News: Ashlin Blieschke)As part of the strategy, new data centres would be required to supply their own power.Developer Quantum DC, who yesterday announced it was pausing its plans for a 1,200-megawatt data centre at Tungkillo, had previously estimated about 20 per cent of the energy it needed would be supplied by a gas power station to be built on a section of its 220-hectare Adelaide Hills block.The company had proposed that the rest of the centre's electricity requirement would be supplied by renewables.Apart from Tungkillo, plans are underway for at least three other major data centres in SA.Australian company Iren proposed a $10 billion 800MW facility at Bundey, near Robertstown in the state's Mid North, while AI giant Firmus previously announced plans for data centres near Tailem Bend and Port Augusta.Kirsty Bevan says using gas is a step backwards. (ABC News: Carl Saville)Conservation Foundation of SA chief executive Kirsty Bevan said the use of gas to supply energy to SA's data centres would be a "step backwards" for the government and the climate."South Australia has led the nation on renewable energy and is aiming for 100 per cent net renewable electricity by 2027, but that progress could be undermined by proposals to lock in more gas," she said.Ms Bevan said using gas would also be ignoring "community expectations"."With energy storage and other backup technologies available to support grid reliability, expanding gas supply for data centres and AI infrastructure is a step backwards," she said.When asked generally about the potential environmental impacts of using gas for data centres, Mr Koutsantonis said: "Well if you don't let them use gas, they'll use diesel or they'll use coal."Robert Simms is urging the SA government to reconsider its position. (ABC News: Tony Hill)SA Greens leader Rob Simms said green-lighting gas projects was a major step away from the government's previous policy."This is outrageous," Mr Simms said."We don't need more dirty gas here.""It's a total backflip from where the government was just a few months ago when they gave an assurance to the people of South Australia that these data centres would be self-sufficient, they'd be reliant on renewables."Mr Simms urged the government to reconsider its position, and proposed a moratorium on the construction of data centres in SA.Political parties including the Liberals, One Nation and the Greens welcomed the pause on the Tungkillo development, and united in the upper house to establish a parliamentary inquiry into data centres.The SA government is currently establishing a regulatory framework for AI data centres, with dedicated legislation set to be introduced to parliament this year.Belinda Dennett is defending the need for gas, but says renewables will still have a substantial role to play. (ABC News: Jack Ailwood)Belinda Dennett, chief executive of national peak body Data Centres Australia, defended the need for gas power generation.But, she said renewable energy would still have substantial role in delivering the large amount of energy needed."I think assuming that suddenly this is all about gas is wrong, there is still a huge commitment to renewable energies," she said."[But] If we wait until we've gone through the energy transition, this investment in data centres will have moved elsewhere."