Northern Territory Labor backs hyper-scale data centre moratorium amid project review push

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NT data centre moratorium

Highlights

Northern Territory Labor now backs a moratorium on hyper-scale data centre developments until July 1, 2025, pending an inquiry report.
The Country Liberal Party government rejected the moratorium and review, passing an amendment emphasizing adherence to national data centre standards to avoid deterring investment.
Twelve data centre developers, including two hyper-scale projects, are considering investments in the Northern Territory amid policy uncertainty highlighted by the debate.

Policy shift follows parliamentary debate

As reported by ABC News, the opposition called for the pause during Wednesday's parliamentary sitting after independent MLA Justine Davis moved a motion seeking a moratorium on all AI data centre developments while an inquiry examines their broader effects.

Davis tabled two petitions with a combined 15,000 signatures on Tuesday. Her motion sought a moratorium while an inquiry established under the Inquiries Act assesses possible effects on electricity prices, water security, emissions and land use.

Labor had previously argued only for an independent review of current and future data centre developments and said a moratorium was unnecessary. But Opposition Leader Selena Uibo now says a moratorium should apply to hyper-scale developments until July 1 next year, with the findings of a review to be released publicly before the pause expires.

Uibo says the Northern Territory Environmental Protection Authority's low level of confidence in the environmental planning for a hyper-scale outback data centre supports the revised stance. She says the regulator has not concluded the project must be rejected, but has found that more information, assessment and community engagement are needed.

Government rejects freeze as investor risk

The Country Liberal Party government uses its parliamentary majority to strip out provisions for a moratorium and a review or inquiry from the motion, meaning neither measure proceeds. Instead, the government passes an amendment stating the Northern Territory is a signatory to national data centre standards and praising what it calls a constructive, nationally consistent approach to the sector.

Business Minister Robyn Cahill says 12 prospective data centre developers are currently considering projects in the territory, including two hyper-scale facilities. She says Labor's support for a moratorium on hyper-scale centres sends a bad message to potential investors.

The debate also highlights Labor's earlier support for the industry while in government. Former chief minister Michael Gunner had promoted two data centres, including a hyper-scale facility in Darwin that is scheduled to become operational next month.

In our earlier article on the Dewan Rakyat session agenda, we highlighted how lawmakers planned to examine the economic value of large-scale data centre investments alongside concerns about higher domestic electricity tariffs. We noted that the discussion was set to weigh the net benefits of data centre projects after factoring in incentives, resource use and jobs, reflecting broader public-policy scrutiny of the sector.

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