Australia retreats on AI renewables plan - Asian Tech Roundup

Plus: Is China’s robot bubble bursting?

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Australia retreats on AI renewables plan - Asian Tech Roundup

Welcome to Computing's weekly roundup of tech news in Asia. This time we look at Australian PM Albanese’s reversal in the face of state energy interests, record-breaking robots and stock market plunges, and New Zealand and Pakistan both proposing under-16 social media bans.

Australia's plans to combine the construction of AI datacentres while simultaneously promoting the development of renewable energy appear to be in jeopardy after prime minister Albanese backed down on a key element of the plan, following resistance from state governments.

Canberra had originally proposed a system called "causer pays" in which data centre providers would fund the construction of solar or wind generation facilities rather than drawing power from the main grid. This would be a way of meeting both the country's AI ambitions and its environmental goals, and preventing power-hungry datacentres from hoovering up the available grid capacity and energy bills increasing for consumers - as has occurred in some US states. The plan sought to standardise requirements for water usage and planning.

However, Queensland, Australia's largest coal producer, and Northern Territories, which is expanding operations on a gas field, objected to the renewables element of the plan. They argued that central government shouldn't be able to control states' energy choices and that they should be able to make their own choices.

Energy minister Chris Bowen had previously said the government was prepared to legislate national standards even without unanimous state support, raising the prospect of a constitutional dispute, but on Wednesday, following a National Cabinet meeting, Albenese backed down. The two states will now be able to decide the energy sources that datacentre developers can choose. However, on Friday Bowen insisted central government will have the final say.

Assuming the carve-out persists, it won't mean that every datacentre builder will necessarily choose coal or gas. Australia has abundant sunshine and land resources, after all, and companies have their own targets to meet, but the revision means no longer guarantees that new AI infrastructure will be matched by new renewables. It is also not clear at this stage that developers will be required to fund additional generation and grid connections on the same terms as originally proposed, or whether the scheme has been fatally weakened.

The wider challenge remains unchanged. Australia has a pipeline of 200 datacentre projects in development and power consumption by the sector is projected to increase multi-fold over the coming years - up seven times by 2035-2036. The original argument of the federal government - that this was a rare opportunity to shape the AI build-out before hundreds of billions of dollars were committed - seems the have been sacrificed on the altar of state politics.

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