The Finocchiaro CLP Government has opposed the Commonwealth's proposal for a national renewable energy offset policy for data centres.
The Commonwealth's proposal is designed for the east coast and is not reflective of the Territory's unique circumstances and opportunities.
The Territory is pushing for greater support to bring Beetaloo Basin gas online and into Australia's domestic energy supply, helping deliver more reliable and affordable energy.
The Finocchiaro CLP Government says the Commonwealth's proposed national renewable energy offset policy for data centres is primarily designed for the eastern states and does not reflect the Northern Territory's unique circumstances and opportunities.
Minister for Mining and Energy Gerard Maley said the Territory is well placed to support Australia's energy needs while continuing to attract major investment and economic growth.
"The Northern Territory is in a fundamentally different position to the eastern states," he said.
"We have abundant gas resources, significant development opportunities, and the capacity to deliver reliable and affordable energy while supporting major new investment."
Minister Maley said if the Commonwealth is serious about achieving its proposed 20% Domestic Gas Reservation Scheme, it should focus on unlocking new supply.
"The best way to achieve the Commonwealth's 20% domestic gas reserve objective is to help pipe Beetaloo Basin gas to the domestic market," he said.
"The Territory has the resources, the land, and the potential to play a critical role in strengthening Australia's energy security and growing our economy."
"Beetaloo gas can support the energy transition by bringing new supply that will meet strict emissions reduction requirements under the Commonwealth's Safeguard Mechanism."
Minister Maley said concerns about electricity constraints on the east coast are understandable, particularly as demand grows from major industries and emerging technologies.
"We can see why electricity grids in parts of the eastern states, which are already operating at capacity, pose an issue for large-scale data centre expansion," he said.
"With access to both solar energy and reliable gas generation, the Territory can provide the energy security these projects require without adding pressure on household and business consumers connected to the existing electricity grid.
"The Northern Territory is not part of the National Electricity Market, and many of the large-scale data centre proponents we are seeking to attract are looking at off-grid models supported by new standalone electricity generation.
"That means these projects can support new generation investment without increasing pressure on electricity prices or grid stability for Territory consumers."
Minister Maley warned against policies that could inadvertently discourage investment in strategic infrastructure in the Territory.
"Let's not demonise data centres. These facilities are critical to the digital services Australians use every day, can help deliver sovereign digital capability here in Australia, and have the potential to bring more jobs to the Territory."
"New data centres should not be put at risk by Minister Bowen's draft policy," he said.
Minister Maley said a practical approach is needed to ensure Australia can continue to attract investment and provide certainty while meeting future energy demand.
"Data centres should be encouraged to develop in locations where there are no energy shortages and where there is capacity for growth. That place is right here in the Northern Territory."
"It is essential we don't adopt a one-size-fits-all solution; we need a Territory-first approach on the table," he said.
