December 2, 2025 — With the rapid development of the artificial intelligence industry, the demand for computing power and data centers has surged. The Australian federal government is considering requiring large AI companies to build renewable energy power plants to support their high-energy-consuming data centers, in order to reduce pressure on the national power grid and the environment.
It is reported that regulatory bodies and industry observers have warned that by 2050, AI-related facilities could consume about 12% of the country's electricity. Data shows that in 2024 alone, data centers consumed approximately 4 terawatt-hours (TWh) of electricity, accounting for about 2% of the total power supplied by the national grid. Based on this, the Minister for Energy and Infrastructure of Australia, Tim Ayres, said that a set of principles for data center investment will be introduced in early 2026, clearly stipulating that large data centers seeking construction permits in the future must invest in renewable energy generation and sustainable water resource solutions.
He said: "We want to see digital infrastructure not only serve the development of AI, but also support our energy future." The government currently envisions that large AI companies may be required to build wind or solar power plants themselves, or invest in energy storage and backup power facilities (such as natural gas peak power plants) to ensure a reliable power supply and environmental sustainability for data center operations.
This proposal has been welcomed by business organizations, unions, and even the technology industry itself, who believe it may establish a new "green coexistence" model for the rapid expansion of the AI industry. At the same time, some have criticized the government's current National AI Plan for lacking clear and urgent investment commitments. As one industry commentator put it: "Like the world is already sprinting, we are still asking — where is the starting line?"
If implemented, this policy could spark a new wave of renewable energy infrastructure development — from wind and solar power generation, energy storage facilities, to green infrastructure combined with data center cooling systems and water management — will become an essential part of future AI infrastructure. For environmentalists, energy planners, and tech companies, this is both a challenge and an opportunity to integrate AI with green transition.
