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

Detailed summary

The South Australian government says it is "absolutely fine" for gas to be used to help power data centres, despite its strategy focusing on renewable energy as the source.

South Australia's energy minister says he is "absolutely fine" for gas-generated power to be used to help supply energy to proposed AI data centres across the state.

The SA Greens leader has criticised the change in position, calling it a "total backflip" by the state government.

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".

As part of the strategy, new data centres would be required to supply their own power.

Opening of the article, excerpted from ABC Business. To read the rest, open the article on the publisher's site.