This story was originally published in The Australian on 26 October 2026.

The next generation of data centres could consume as much energy as a city the size of Brisbane.

However, gigawatt-scale data centres, which will be critical to Australia’s technological sovereignty and national resilience, could be positive contributors to the power grid, supporting energy security and transition.

The new AI and data centre policy framework agreed to by National Cabinet outlines that data centres should be powered by renewables, backed by storage and firming, such as batteries and gas, with a level of flexibility for individual states. 

This hybrid model of energy generation, combining renewables, batteries and gas, is already being delivered in the off-grid region of Mount Isa. 

APA group executive energy solutions Darren Rogers said the Sybella Creek Solar Farm and Battery Energy Storage System (BESS) project near Mount Isa is a good example of how a mining operation can use a mix of energy generation including solar, batteries and highly efficient gas generation to lower costs, emissions and maintain reliability while reducing pressure on other users.

He explained that the project includes a large solar farm, backed up by batteries, and then firmed by gas to provide a highly reliable power supply.

“Evolution Mining wanted a lower cost, lower emissions from power generation supporting their mining operations in Mount Isa but obviously they need power 24 hours a day, which solar and batteries can’t provide alone,” he said.

“So we’re going to be providing a renewable energy solution firmed by our gas-fired power station. And the overall outcome for the customer is a lower emissions product, a lower cost of energy overall, and a really reliable source of energy.”

How gas can support renewables

Sybella Creek Solar Farm and BESS is a model of how renewables, batteries and gas can work together to generate the power needed for the coming decades.

APA CEO Adam Watson said while batteries are a good option to store and release renewable energy when needed, they are generally limited in capacity, which is why gas can complement renewable sources, as it can be turned on and off quickly and run for extended periods.

He explained a multi-day wind drought in South Australia in June this year demonstrated the role gas plays as a back-up to renewable energy. As renewable energy dropped on June 20 in South Australia, grid-scale batteries stepped up but were discharged within hours. Gas-powered generation stepped in to keep the lights on for the next four days.

“We know that batteries are playing an increasing role across Australia stepping in to manage evening peak energy demand. But batteries can’t and won’t deliver the long duration firming needed when the sun doesn’t shine and the wind doesn’t blow – as demonstrated in South Australia in June. 

“It’s the same challenge presented by data centres which require significant amounts of energy 24/7. They will need long duration energy storage and flexible back-up generation – renewables led, paired with batteries and then firmed with gas.”

The lesson is not that Australia should slow the shift to renewables but that renewables need an effective safety net, with gas providing the best option.

Mr Watson explained gas can be switched on and off as needed and can ‘smooth out’ the amount of energy going into the grid.

“Gas turbines are largely spinning machines and can effectively smooth out fluctuations in our electricity market,” Mr Watson said.

“As renewable generation increases, output can change quickly. A lot of solar generation can come online at the same time, while cloud cover can cause output to drop suddenly. Spinning reserves help smooth those changes out.”

“A gas-fired generator provides that backup because it is already synchronised to the grid and can respond quickly when needed.”

A model for Australia’s future

While the technology that allows much of Australia to run on renewable energy firmed by gas is here, the energy transition cannot happen without collaboration between government and industry.

The Queensland government is an example of that collaboration. The Queensland Energy Roadmap supports private sector investment in the delivery of new fast-response gas generation to firm renewable energy. 

Work has now commenced on the Brigalow Peaking Power Plant, located next to the existing Kogan Creek Power Station. APA Group is working in partnership with the Queensland-government-owned CS Energy to develop the 400-megawatt plant that will provide energy during peak periods, reinforce power system reliability and complement renewable energy. 

“The Queensland Government has done a really good job attracting private sector investment and the Brigalow project is one example of how to answer the question of, ‘where does that firming capacity come from?’,” Mr Rogers said.

He explained the plant will have the capacity to power the equivalent of more than 150,000 homes during peak periods.

“Because this power station is dispatchable, we can turn it on at 5:30 in the afternoon. We can run it during the evening peak while we’re all making dinner, and then we can turn it off and it can just sit there until the next morning.”

Mr Watson says Brigalow shows the important role gas plays as more renewable energy is integrated across the country.  

“We do see a strong future for gas in Australia. We’re a very resource-rich country. And there is a long-term use of gas within the system. There’s no doubt that as more renewables are brought into the system, gas-fired power generation can back these up,” he said. 

“As we move our coal-fired power into retirement over time, we will reduce our emissions, and get a lower cost of energy, as more renewables backed by gas come into the system.”