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The United States kicked off the solar power industry, but then Germany took it to another level, and Australia followed close behind and became true leader globally in rooftop solar power adoption. With strong federal policies and some strong state policies, Australia shot to the top of the charts in this regard. It remains one of the best places in the world for the percentage of homes and businesses that have rooftop solar PV systems. I’ve long admired the country for that.
One of the big struggles at the moment that we write about consistently here on CleanTechnica is the explosion of AI data centers and their enormous appetite for electricity (among other things). It’s a big challenge, enormously increasing pollution and global heating. Well, Australia has come to a solution. It’s not something like Einstein’s E=mc^2 — it’s quite a common-sense solution — but it’s something others haven’t yet been doing. Australia is now on the verge of requiring that large AI data centers secure their own new clean energy supply.
First of all, this makes sure the electricity source is clean. Beyond that, though, it means that they can’t just “steal” clean energy from other buyers, or expected buyers, and limit the clean energy supply on the market. They have to be sure to stimulate their own new clean power projects.
The legislation isn’t live yet, but it is expected to hit in early 2027.
The AI data centers will also have to cover the cost of new connection infrastructure and, if necessary in certain cases, be willing to reduce power when the grid needs it. (Details are forthcoming.) There will also be water use requirements.
“We will create a legal obligation for the next generation of large-scale data centers to underwrite new power supply, to pay their full share of grid connection, so no costs are passed on to homes or businesses,” Australian Prime Minister Anthony Albanese said on Wednesday, July 15, addressing the nation at the University of Sydney. “And to put at least as much energy into our grid as they take out of it. To be net-generators, not net-users. To build new renewable generation — and firming — to strengthen our national energy resilience. And ensure data centres do not increase power prices for Australians.”
Sounds smart and logical to me.
“Every country on earth is grappling with these challenges right now. Australia will be the first country in the world to bring these issues into a single, national framework,” Albanese added.
Can we have some of that common sense on this topic over here in ‘Murica, please.
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