Albanese backs down on states powering AI datacentres using renewable energy

Shift comes after Chris Bowen said Labor would use constitutional powers to override states resisting rules on sustainable energy

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Anthony Albanese has backed down on demands that states must power new AI datacentres entirely using renewable energy, with Wednesday’s meeting of https://www.theguardian.com/australia-news/2026/aug/25/albanese-seeks-to-quell-datacentre-disquiet-as-climate-expert-warns-weve-got-one-shot-to-get-the-rules-right">national cabinet flagging carveouts for jurisdictions including Queensland and the Northern Territory.

The prime minister welcomed the “positive and constructive” discussions in Sydney, but opened the door to a flexible approach under new nationally consistent standards to deal with AI development, including for governments with state-owned power systems.