Energy North drops NT data centre power target after regulatory pause

Energy North has abandoned its target of delivering first power on 28 June 2028 at its proposed Northern Territory data centre after the environment regulator paused a decision on assessment requirements.

The regulator's 7 October ruling suspended the seven-week deadline for determining the environmental requirements for Project Ares. It said it would consult the federal government about policy expectations being developed for data centres and artificial intelligence infrastructure, without specifying when a decision would follow.

Daniel Hunter, Energy North's vice president of project development, said the June 2028 timing was indicative when the application was lodged and no longer applied. He said the company would confirm its schedule after the regulator outlined requirements for an environmental impact statement.

The proposed 1 gigawatt development would occupy 191 sq km and include gas turbines, a solar farm, an airstrip and housing for 4,300 construction workers. The Northern Territory's Environment Protection Agency identified 10 potential impacts, including pressure on water systems and disturbance to Aboriginal sacred sites. It expressed low confidence that the proposed safeguards would adequately manage potentially significant effects.

Energy North says financing is lined up for the project, but Hunter declined to identify the prospective backers. The company says it would use renewable energy alongside its own gas-fired generation rather than draw power from the grid.