As Labor plans gas reservation, big name ASX CEOs eye gas for AI revolution
On one side of Sydney, the government confirmed plan to reduce gas shortfalls. On the other, CEOs were figuring out how to cope with a quadrupling of power demand caused by data centres.
The federal government’s plans for an east coast gas reservation policy may have left energy users with more questions than answers. But at least one thing became clear this week: if Australia is to capitalise on the data centre boom fuelling the AI revolution it will require vast amounts of new energy — and gas will be a big part of that.
Speaking to journalists in Sydney after announcing the new policy to reserve 20% of all natural gas exports for domestic use from 2028, Climate Change and Energy Minister Chris Bowen said “it will ensure a modest oversupply of Australian gas use”.
He argued that the reservation policy would see east coast gas shortfalls for consumers and businesses forecast by the Australian Competition and Consumer Commission “dealt with, will see them go away”.
When asked by Capital Brief if that claim accounts for forecast demand for data centres, Bowen said it “includes all the best forecasts available to us”.
