Experts welcome BYO energy deal for AI data centres

Experts are calling on the federal government to stand firm on commitments to mandate data centres to provide renewable energy.

The states and territories agreed to nationwide standards for artificial intelligence data centres at a meeting of national cabinet in Sydney on Wednesday.

The prime minister announced agreement on the AI laws alongside domestic violence measures and firearm reforms.

"We want to make sure that in attracting investment, we don't have eight different systems operating around the country," Anthony Albanese said on Wednesday.

"That's why we came to a common position, which recognises that all states aren't exactly the same, and that was accommodated in the way that we normally do in a flexible way."

Gregor Verbic, an energy expert at the University of Sydney, said the national grid was facing the imminent closure of multiple coal-fired power stations.

"(It) will leave a huge gap in the generation capacity, and we are not building new capacity fast enough," he told AAP.

The federal government has proposed legislation to force data centre developers to provide their own renewable energy source.

That's received considerable pushback from the Queensland and Northern Territory governments which were open to coal and gas-fired energy, with the final national agreement failing to mention renewable energy directly.

Professor Verbic said ensuring the energy brought online is renewable is essential to meet Australia's emissions reduction targets.

"Gas is quite expensive, so I would argue that renewables firmed by utility-scale storage, possibly some gas, is a cheaper solution," he said.

"Gas can be kept as an option for firming ... but as a base load or continuous source of supply, gas is not the right option."

Mr Albanese flagged draft legislation will be introduced by the end of 2026, with the aim for it to be passed in early 2027.