The Albanese government has shut down the prospect of using nuclear to power data centres in Australia, despite growing interest in the technology overseas.
Australia has been one of the top destinations for data centre investment, but there remain massive concerns about how to power these energy-intensive facilities.
Assistant Technology Minister Andrew Charlton told Sky News Sunday Agenda that data centres consume about 2 per cent of the energy grid, and that could triple in 10 years.
Mr Charlton said that the power could be delivered by renewables, including solar and wind, while rejecting the prospect of nuclear-powered data centres.
“There are no proposals from these large data centre operators for nuclear power,” Mr Charlton told Sky News Sunday Agenda.
“They are all putting proposals based on renewables, a range of solar and wind.”
While Amazon, Microsoft, Google and Meta have all reached agreements to source nuclear energy in the US, Mr Charlton claimed this was not the case in Australia.
“There are no proposals, no suggestions for nuclear energy… I’d rather talk about commercial reality rather than commercial irrelevancy,” he said.
“These nuclear proposals do not exist. All of the data centres that are coming in are proposing to do firmed renewables that will meet their energy needs.”
The comments come as the Albanese government seeks to position Australia as a destination for AI investment while introducing new national standards for data centres.
International forecasts suggest global data centre electricity consumption will double by 2030 as AI adoption accelerates.
The rapid growth has prompted technology companies overseas to pursue a range of energy sources, including gas, geothermal and nuclear power.
United States Department of Energy recently found the firm power generated by nuclear “fits perfectly” with the 99.99 per cent energy reliability needs of data centres.
Deputy Liberal leader Jane Hume said the Albanese government’s approach to AI overlooked international developments in energy and data centres.
“Hyperscalers like Amazon and Meta and Google are setting up overseas, but using small modular nuclear reactors and even micro modular nuclear reactors,” she said.
“Now, they’re not even allowed to do that here because there’s a moratorium on nuclear.
“Of course, the Coalition would like that moratorium lifted so that we can bring more energy into the grid.”
She said the government’s AI agenda had missed an opportunity to focus on productivity and innovation.
“The opportunity is incredible to lift productivity, which is what our economy so desperately needs, but that’s not what he’s talking about.”
In 2024, Australia ranked second globally, after the United States, as the most attractive destination for firms building data centres.
This has been the subject of work by the Prime Minister Anthony Albanese on visits to the United States, as well as efforts from former ambassador to the US Kevin Rudd.
Big tech firms have been attracted by the vast space available to put these large facilities as well as the political stability and legal frameworks in the country.
Australia’s position as a Five Eyes intelligence country—alongside Canada, New Zealand, and UK—as well as cooperation with the US, has also attracted investment.
However, there remain significant dangers from technological advancements, including national security dangers and the threat of AI taking over society.
It has also raised concerns about future workforces, particularly white-collar work, and massive concerns about the need for baseload power, such as nuclear energy.
The shift comes as Prime Minister Anthony Albanese unveiled a sweeping national AI framework, setting out plans for a new Office of AI.
The Albanese government’s new national framework will prevent AI developers from receiving a proposed text and data mining exemption from copyright laws.
Mr Albanese also announced his government would set up national standards for the use of AI through a cabinet process early next year.
The framework will also force AI and data companies to pay for energy infrastructure and safeguard land for housing in the face of data centres.
Mr Albanese argued Australia could harness the benefits of AI while ensuring it reflects the “country’s values” under the new national framework.