The Northern Territory's push to become a global AI data centre hub is being accused of creating an artificial market for Beetaloo Basin gas, which has now begun flowing into its energy system. Federal Resources Minister Madeleine King and NT Chief Minister Lia Finocchiaro were on hand to turn on the tap, eight years after the Territory lifted its moratorium on fracking.
Wed 2 Sep 2026 11.09 AEST
Photo: AAP Image/Lukas Coch
Greens Senator Sarah Hanson-Young said on ABC’s 730 last night that a 25% tax on gas exports would be “bigger and simpler” than Labor’s proposed gas reservation policy. She's right.
The Northern Territory’s push to become a global AI data centre hub is being accused of creating an artificial market for Beetaloo Basin gas, which has now begun flowing into its energy system.
Federal Resources Minister Madeleine King and NT Chief Minister Lia Finocchiaro were on hand to turn on the tap, eight years after the Territory lifted its moratorium on fracking.
However, the Environment Centre NT said “grotesque levels of taxpayer-funded spin” didn’t prove the fracking industry was commercially viable.
“The Country Liberal Party and Texan frackers are patting themselves on the back about ‘first gas’ – but the Beetaloo is still not commercially viable, which is why they have released this absurd plan to make the Top End the data centre capital of the globe,” said Environment Centre NT Acting Co-CEO Bree Ahrens.
Conservationists say pilot projects being developed by Beetaloo Energy and Tamboran could provide more than enough gas to meet the NT’s demand, arguing there’s no need to expand the fracking industry.
“Despite the spin about keeping the lights on, the reality is that fracking is propped up by huge amounts of our money, secret deals behind closed doors, and inflated job figures,” said Ms Ahrens.
The Australia Institute has also questioned what Territorians have to gain from developing the Beetaloo Basin.
“The headline economic impacts are grossly overstated,” said Matt Saunders, a senior economist at the Australia Institute, who co-authored a discussion paper on the issue.
“The Beetaloo Basin gas development will further entrench the NT economy’s petrostate-like reliance on the oil and gas industry, crowding out other industries. It will also increase fossil fuel profits and global greenhouse gas emissions.”
However, plans for energy-hungry data centres could create a new market for gas.
The NT Government has granted Beetaloo Digital exclusive rights to 185 hectares of land at Weddell, about 30km from Darwin, for a proposed $40 billion data centre powered by Beetaloo Basin gas.
The project would require up to two gigawatts of power – more than six times the peak electricity demand of Darwin and Katherine, according to the ABC.
It would also use an estimated four gigalitres (four billion litres) of water per year, sourced from the Montejinni Limestone Aquifer in the Georgina Wiso Basin.
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But exactly how future large-scale data centres will be powered has become a point of contention between Canberra, Queensland and the NT.
Prime Minister Anthony Albanese initially pledged that centres would need to be tied to new renewable energy projects.
However, Queensland and the Northern Territory emerged from last week’s national cabinet meeting claiming victory, saying they had secured the final say over how the centres are powered, including the option of using coal and gas.
That was slapped down by federal Energy Minister Chris Bowen, who rejected claims they’d secured a carve-out.
“Well, I sit in national cabinet with Premiers, Chief Ministers and the Prime Minister, and Chris Bowen doesn’t. And thank God he’s not the Prime Minister,” said Chief Minister Finocchiaro.
“We wholeheartedly subscribe to making sure there is a national framework around water, around location, around data sovereignty and security. But we draw a line at energy.”
When pressed on the issue, Minister King didn’t clear up the confusion.
“What’s really important is the NT, the Territory, and the Federal Government and all the other states have a common goal – we do want data centres because we want to train AI in Australia. We do have to have discussions, and they’ll be robust, and that’s fine,” she said.
The Greens have called for an urgent moratorium on data centre projects while new standards are being developed.
“Instead of ensuring strong rules are in place to regulate big AI data centres and drive investment in clean, reliable power, Labor has opened the door to more gas, more pollution and a fossil fuel free-for-all,” said the Greens environment spokesperson Senator Sarah Hanson-Young.
“The Prime Minister has caved into the fossil fuel industry and big tech at the first hurdle.
“This is a data centre disaster.”
