NT government opens door to AI industry powered by Beetaloo gas

Lead

The Northern Territory government is positioning the region as a global destination for artificial intelligence data centres, with a proposed $40 billion hyperscale facility near Darwin and a dozen other projects in early stages, all powered by natural gas from the Beetaloo Basin. The push has drawn sharp criticism from environmental groups and some experts, who warn the projects could undermine Australia's climate targets, strain water resources, and raise questions about the scientific basis of the government's arguments.

Coverage comparison

Reporting from ABC Australia and The Guardian has outlined both the economic ambitions and the environmental and scientific controversies surrounding the NT's data centre strategy. ABC Australia's coverage has provided a neutral overview of the government's support for the gas and data sectors, noting the proposals from 12 data centre proponents across rural blocks near Darwin and remote cattle stations. The Guardian's coverage has taken a more critical tone, focusing on what it describes as scientifically inaccurate claims made by a NT minister and highlighting concerns from experts about water use and fracking.

Key claims

• The NT government wants to make the territory the "datacentre capital of the globe," according to Minister for Trade and Business Robyn Cahill, as reported by ABC Australia and The Guardian.
• The government has granted Beetaloo Energy an exclusive commitment over 185 hectares of land near Darwin through a "do-not-deal" agreement, as reported by ABC Australia.
• A $40 billion data centre has been proposed for Weddell, near Darwin, which would be powered by up to 2GW of on-site power generation fuelled by gas fracked and piped from the Beetaloo Basin, as reported by ABC Australia.
• 12 data centres have been proposed for the NT, with proponents eyeing a range of locations, as reported by ABC Australia.
• The NT is attractive to AI firms due to its abundant solar and gas resources, as reported by ABC Australia.
• The use of natural gas has environmental groups worried, as reported by ABC Australia, with Greenpeace Australia calling for a pause on data centres until a review of legislation is completed.
• Environmental campaigners are concerned about the impact on climate targets, as reported by ABC Australia.
• The cattle industry is concerned about competition for water, as reported by ABC Australia.
• The Environment Centre NT is calling for a public ban on fracking and data centres, as reported by The Guardian.
• Experts have warned about the impact of massive data centre projects on water resources, as reported by ABC Australia and The Guardian.
• NT minister Robyn Cahill made scientifically inaccurate claims about groundwater and Earth's magnetic poles, as reported by The Guardian. Cahill was quoted as saying the territory has so much groundwater that it affects the Earth's axis and that using it could prevent the poles from flipping. The Environment Centre NT's executive director, Kirsty Howey, described the claim as "completely cooked," and Dr. Dylan Irvine, a groundwater hydrology expert at Charles Darwin University, told ABC Darwin that "we're not at risk of the poles flipping."

Perspectives

NT Government: The government supports the growth of the gas and data sectors, seeing them as key to economic development. Lands, Planning and Environment Minister Joshua Burgoyne said the "do-not-deal" agreement with Beetaloo Energy "gives a clear signal to investors out there that this government is open for business." Minister Robyn Cahill argued that the territory's abundant groundwater supply is a resource that should be used for data centres.

Beetaloo Energy: Managing director Alex Underwood described the proposed Weddell project as "the next wave of the Industrial Revolution," saying the demand for power for data centres is "truly insatiable." The company plans to "deliberately oversize" the power plant to feed back into the grid.

Environmental Groups: The Environment Centre NT's executive director, Kirsty Howey, called Cahill's groundwater claims "frightening" and said regulators appear to lack a high-school understanding of water science. The group is calling for a public ban on fracking and data centres. Greenpeace Australia is calling for a pause on data centres until a review of legislation is completed.

Cattle Industry: The industry holds "great concern" that an AI revolution could put extra pressure on remote infrastructure, particularly water resources.

Experts: Dr. Dylan Irvine, a groundwater hydrology expert at Charles Darwin University, dismissed the minister's claims about the poles flipping, stating: "We're not at risk of the poles flipping … I'm not concerned about the Earth tipping or flipping of poles."