'Mega' Gas Plant Planned to Feed Hungry AI Data Centres
A proposed large gas-fired plant in Marulan, New South Wales aims to supply electricity to rapidly expanding AI data centres. The project sharpens the tension between Australia's climate pledges and energy security needs.
The large-scale gas plant proposed in Marulan, New South Wales, is planned at about 1,000 megawatts capacity, according to ABC News Australia. The developer said the project's main purpose is to reliably supply electricity to AI data centres mushrooming around the Sydney area. The data-centre sector is seen as the fastest-growing segment of Australian electricity demand over the next decade.
Local environmental groups argue that new fossil-fuel capacity should be challenged given Australia's 2030 net-emissions target. The NSW state government said the plan has entered an environmental impact assessment and will be opened to public consultation. AI sector data-centre investment in Australia is expected to exceed A$30 billion by 2030.
According to ABC News, technology firms say current renewable generation alone is not enough to deliver the uninterrupted power profile that AI workloads require. Government sources said gas as a bridge technology to support the coal phase-out is under consideration. The Environment Department plans to announce its decision within six months.
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