NT Opposition leader calls for moratorium on 'hyper-scale' data centres

In short:

The Territory Labor opposition says a moratorium on "hyper-scale" data centres should be imposed until July next year, while a review into them is undertaken.

Labor had previously only called for a review into "current and future" data centre developments and said a moratorium was unnecessary.

The opposition called for the hyper-scale moratorium in parliament yesterday, after an independent moved a motion for a moratorium on "all AI data centre developments".

The Northern Territory Labor opposition has come out in support of a moratorium on "hyper-scale" data centres just weeks after saying a moratorium wasn't required.

In NT parliament on Wednesday, independent MLA Justine Davis moved a motion to implement a moratorium on "all AI data centre developments", having tabled two petitions with a combined 15,000 signatures on Tuesday.

Ms Davis's motion sought to have a moratorium imposed while an inquiry, established under the Inquiries Act, assesses the impact of data centres on electricity prices, water security, emissions and land use.

In the previous parliamentary sitting week in August, Labor's Deputy Opposition Leader Ed Smelt had moved a motion seeking an "independent review of data centres", and said a moratorium was not needed.

But on Wednesday, Opposition Leader Selena Uibo said a moratorium should now be implemented on "hyper-scale developments" until July 1 next year, and the findings of a review should be publicly released before the moratorium expires.

Ms Uibo pointed to the NT Environmental Protection Authority's (EPA) "low level of confidence" in the environmental planning for a hyper-scale outback data centre as a reason for Labor's new position.

"That is the independent environmental regulator telling all of us that the important questions for that specific project remain unanswered," she said.

"Let us be very clear about something Madam Speaker, the EPA has not concluded that the project must be rejected, it has concluded that more information, more assessment and more community engagement [is] necessary. 

"That is precisely the kind of evidence-based approach that Territory Labor [is] calling for."

The Country Liberal Party (CLP) government ultimately used its parliamentary majority to remove provisions for a moratorium and a review or inquiry from the motion, meaning they will not proceed.

The CLP instead passed an amendment stating the NT is a signatory to national data centre standards.

The amendment also commended the CLP "on its constructive, nationally consistent approach to this growth industry, in contrast with other approaches that will simply spread fear and misinformation".

The NT's Business Minister Robyn Cahill has said 12 prospective data centre developers are currently eyeing projects in the territory, including two hyper-scale facilities.

She told Question Time yesterday that Labor's position on a moratorium for hyper-scale centres sent "such a bad message to potential investors".

While in government, former Labor chief minister Michael Gunner spruiked two data centres, including a hyper-scale facility in Darwin, which is scheduled to be operational next month.