Chris Bowen declares nuclear to power data centres a ‘pipe dream’ ahead of National Cabinet clash over energy

Energy Minister Chris Bowen has declared nuclear as a power source for data centres as a “pipe dream” and insisted renewables will be Australia’s pathway to become an artificial intelligence hub.

Energy supply for data centres will be the central issue at Wednesday’s National Cabinet meeting, with Queensland and the Northern Territory clashing with the Commonwealth over gas usage.

Anthony Albanese is expected to outline for state and territory leaders the government’s new national standard for AI, including minimum obligations for data centres around water and energy usage as well as training regarding copyright, security, and safety.

However, the Prime Minister risks a showdown over gas restrictions, as Northern Territory Minister Josh Burgoyne warns against Commonwealth “overreach” and Queensland Premier David Crisafulli refuses to back down on gas power.

It comes as the Coalition has previously called for nuclear energy to be considered to help support Australia’s energy intensive data centres.

While Australia has had a prohibition on nuclear power generation since the 90s — which Coalition have called to be removed — countries like the US are exploring if small modular reactors can bolster grid capacity for data centres.

Speaking in Perth on Tuesday, Mr Bowen shut down the idea of lifting the nuclear moratorium to let the market decide if it was worth the cost to establish reactors.

“This is a pipe dream,” the Labor frontbencher said.

“These data centres are coming now. A nuclear power station takes 20 years.

“We are focused not on distractions like nuclear, which is the most expensive form of energy and the longest to deploy.

“And I see Mr Tehan out there talking about small modular reactors.

“There isn’t a small modular reactor operating anywhere in the world outside China and Russia. Nowhere.

“We’re focused on the practical, common-sense reality, which is renewables backed by gas firming.”

Mr Bowen reminded his shadow minister, Liberal MP Dan Tehan that it was under John Howard’s leadership of a former Coalition government that nuclear power was banned.

After hosting his Federal Cabinet in Perth on Tuesday morning, Mr Albanese will travel to Sydney to address the Business Council of Australia’s annual dinner.

Mr Albanese is expected to use the speech to declare that Australia can “do more to unlock frontier AI development in Australia” but insist that the path forward needs to maintain a “social license”

“AI adoption will continue to grow as business builds and tests newer capabilities and frontier AI capabilities accelerate,” the PM is expected to say, according to speech excerpts.

“We must shape this change to harness the positive opportunities while minimising the downsides.”

“But maintaining social licence will be essential,” he will say.

“That means ensuring energy bills do not rise, water security is maintained and locations are appropriate.

“Getting this right can ensure Australia is the infrastructure partner for our region, aided by our status as a Five Eyes partner.

“It will advance our national sovereignty, and it is essential for our national security, business productivity, science, innovation and resilience.”

Mr Albanese will argue Australia must turn attractive investment settings into a national “comparative advantage”, and will add that progress in AI could help the nation see off the “populist challenge”.