The Aussie Byte

The federal government's proposed mandate for new data centres to minimise water use and maximise energy efficiency has been met with opposition from the Queensland and Northern Territory governments. The Australian Energy Market Operator warns that data centres are expected to use about 10 per cent of the electricity in Australia's grid by 2050, while a report from S&P Global forecasts Australia's data centre capacity could more than double over the next five years.

DeepSeek, a Hangzhou-based start-up, plans to build a massive AI data centre in Ulanqab, Inner Mongolia, adding 1 gigawatt worth of compute capacity, about 350 kilometres north-west of Beijing.

Rio Tinto chief executive Simon Trott predicts that investment in data centres will reach $US1 trillion and will require significant amounts of copper, steel, aluminium, and lithium from his company. This boom is expected to drive demand for these materials, with Rio Tinto being a key supplier. The growing demand for data centres is driven by the increasing use of cloud computing and online services. As a result, companies like Rio Tinto are poised to benefit financially from this trend. The investment in data centres will also have environmental implications due to the increased energy consumption required to power these facilities.

Prime Minister Anthony Albanese's plan to mandate renewable energy for data centres has been met with opposition from conservative premiers David Crisafulli of Queensland and Lia Finocchiaro of the Northern Territory, who promote fossil fuels. Despite this, most states have agreed to develop a scheme to force data centres to prove they sourced electricity from renewable projects, which would be designed to put downward pressure on electricity prices. The Australian Energy Market Operator has forecast that data centres will reach 10% of total demand by 2050. Industry Minister Tim Ayres said national unity is critical ahead of next week's meeting of national cabinet. Albanese aims to secure more investment and benefits for locals through this plan.

Beetaloo Energy has signed a non-binding memorandum of understanding (MoU) with Halliburton to advance its Beetaloo Digital development in the Northern Territory. The project aims to create a dedicated power source for data centres by utilising the vast resources trapped within the Beetaloo Basin. Halliburton will provide technical expertise and services, including scalable, modular gas-fired power solutions for hyperscale data centres. This partnership is expected to support the rapid growth of data centres in the Asia-Pacific region and establish a large-scale, cash generator for Beetaloo Energy.

BlackRock's stock price rose by 5.7% after the company announced a $14 billion data center deal with Meta Platforms, Inc., where BlackRock will hold an 80% stake and contribute around $4.9 billion in cash. The venture is part of BlackRock's efforts to invest in AI-focused digital infrastructure. The deal also highlights how large asset managers are partnering with big technology companies to finance and own such infrastructure.

Fortescue Metals Group, an iron ore miner, has announced a surprise move to develop a data centre in Western Australia, marking a significant shift into the tech sector for the company. This plot twist is driven by Fortescue's ambitions to diversify its revenue streams and capitalize on growing demand for cloud computing infrastructure. The move may also be linked to the company's earlier announcement of plans to invest in hydrogen production.

The Albanese government plans to introduce stricter rules for data centres in Australia, requiring them to pay for additional renewable energy and invest in specific locations, but operators argue they should be allowed to decide their own renewable energy investments.

Koch Inc. is considering a sale of Edged, the data center developer it cofounded, in a transaction that could exceed $15 billion. The company has engaged Goldman Sachs Group Inc. to assess buyer interest and has received multiple bids. Discussions remain ongoing and no final agreement has been reached. Edged currently runs seven data centers, including a 169-megawatt facility in Atlanta, with additional projects in development. Growing demand from major technology companies for computing power and capacity has accelerated data center construction worldwide.

EQT Corporation has secured a 10-year agreement to supply 325,000 Dekatherm (Dth) per day of natural gas to the planned CPV Shay Energy Center in Doddridge County, WV, with pricing linked to PJM power markets. This contract is part of EQT's strategy to convert rising electricity consumption into contracted gas demand through power plants, data centers, pipeline access, and liquefied natural gas (LNG) exposure. The company has also signed a five-year LNG offtake agreement for 0.5 million tonnes per annum beginning in 2028, adding $45 million to its 2028 free cash flow at recent strip prices. EQT is tracking over 45 Appalachian demand and pipeline takeaway projects totaling nearly 20 Bcf per day of potential demand. The company's LNG exposure broadens its demand base beyond local power and pipeline projects and adds a route to international natural gas markets.

Meta and BlackRock are teaming up to build a massive $14 billion data center campus in Texas, marking a significant investment in the region's infrastructure.

Energy prices are falling in Australia, but the rise of data centres could push them back up due to forecasted demand that will increase five-fold by 2035, from 2% of average demand to about 10%. Data centres are expected to tap existing supplies before new capacity can be developed, putting upward pressure on wholesale power prices. According to a report commissioned by the Clean Energy Finance Corporation (CEFC), data centre investment is forecasted to reach up to $135 billion in Australia by 2035. The demand for power from data centres will come mainly from artificial intelligence systems and cloud computing. Analysts warn that data centres could soak up existing or committed projects, rather than developing new capacity.

AirTrunk, one of Australia's largest data centre operators, has warned that struggling renewable energy projects should not expect to be bailed out by the booming digital infrastructure sector. The company's comments come ahead of a virtual meeting between state and federal energy ministers on Tuesday to discuss new rules for data centres sourcing electricity without pushing up power prices or derailing Australia's transition to renewable energy.

Viridis Green Data Centres, which donated $20,000 to the LNP in October and engaged ex-Nationals premier Rob Borbidge as a lobbyist, has had multiple meetings with Queensland government officials, including Customer Services and Open Data Minister Steve Minnikin's staffers. The meetings, which took place between March and June, were listed as briefings on proposals for regional data centres. Viridis managing director Michael Bull also appeared on ABC Brisbane to tout the company's green credentials. The Crisafulli government has shown willingness to use its levers to fast-track or overrule council decisions, and it is open for business according to the Premier.

Lane Cove West in Sydney may become a 'data centre wasteland' due to the proposed construction of five data centres, including Goodman's 'Project Mars', which would be located just 160m from a primary school and homes. The area is already home to five existing data centres, with six more proposed. Ryde Council has warned that the precinct is nearing saturation point and risks becoming a residential dormitory and data centre wasteland.

Victoria Pengilley's report 'AI data centres Stateline' explores the threat of a rogue AI attack on Australia, citing a cyber expert's warning that the question is when, not if, such an attack will occur.

Marvell Technology's stock has seen its fair value estimate revised from US$118.93 to US$254.41 by analyst models, driven by optimism around the company's AI data center exposure, optical interconnect strength, and custom silicon programs. Several firms, including UBS, BofA, Stifel, KeyBanc, Raymond James, and HSBC, have lifted Marvell Technology price targets sharply, citing these strengths. However, Erste Group has downgraded the stock to Hold due to customer concentration and premium valuation concerns. The revised fair value estimate reflects modeled revenue growth of 41.27%, up from 31.99%, and an assumed net profit margin of 29.11%, up from 26.22%. The discount rate in the valuation framework has also been adjusted from 10.76% to 11.16%.

Firmus, an Australian data centre developer co-founded by Oliver Curtis and Tim Rosenfield, is seeking state government support to fast-track its $15.5 billion expansion plans in South Australia, which include four proposed artificial intelligence factories. The company's efforts come as its projects in Tasmania face community resistance and council delays. Firmus aims to float on the Australian Securities Exchange later this year with a valuation of $15.5 billion.

The NSW Net Zero Commission has released its annual progress report, concluding that New South Wales is unlikely to meet its legislated 2030 and 2035 emission reduction targets due to coal mine expansions and a surge in new data centres. The commission found that the state will fall between 10 and 20 million tonnes short of its 2030 emissions target, up from an estimated 7 million tonnes the year prior. The report highlighted 20 applications to extend coal mines, including the proposal to extend Hunter Valley Operations currently before the Independent Planning Commission (IPC). Data centres are also a growing concern, with Australian Energy Market Operator (AEMO) forecasts indicating they will add eight terawatt hours to annual NSW electricity demand by 2035. The commission called for these projects to be assessed against legislated targets and required to implement mitigation measures.

The Northern Territory (NT) government has announced a major shift in its data centre strategy, opting to pursue traditional gas-powered energy rather than green or renewable energy sources for its planned facilities. This decision is seen as a departure from the previous vision of establishing NT as a hub for environmentally friendly data centres. The move is driven by economic considerations and concerns about the reliability of renewable energy sources.

Galaxy Digital Inc. plans to raise approximately $3.5 billion through its first junk-bond sale to finance the Helios Data Center Campus project in Dickens County, West Texas, and establish debt service reserves. The funds will support a data center connected to CoreWeave Inc., which has agreed to lease computing capacity at the facility through 15-year contracts projected to generate over $1 billion in annual revenue. Morgan Stanley and Goldman Sachs Group Inc. are managing the offering, which is scheduled to price on July 23. The project's first phase was completed earlier in 2026, with the second phase set to begin in 2027.

The Clean Energy Council has proposed an industry plan that would require new data centres to power 100% of their operations with renewable energy from the federal government's green energy scheme if direct deals with wind and solar companies are not made. This plan aims to boost Labor's flagging renewables rollout by forcing data centre operators to purchase excess power from the scheme. The proposal could improve the prospects of several struggling projects in the sector. Data centre power demands that are not covered by direct deals would need to be purchased from the federal government green energy scheme under this plan.

Intel has confirmed plans for layoffs within its data center group as part of a broader strategy to become a more focused and efficient company. The job cuts are expected to affect an undisclosed number of employees, but will not impact the data center group's product commitments or roadmaps. This move is part of Intel's ongoing efforts to streamline its business, following previous layoffs in 2024 that saw over 15,000 job cuts as part of a plan to deliver $10 billion in cost savings for 2025.

New York State has introduced a moratorium on large data centers due to concerns about power grid capacity for AI infrastructure, aligning with BlackRock CEO Larry Fink's earlier warnings about power bottlenecks as a constraint on AI growth. This policy development adds a regulatory dimension to a risk that BlackRock has already been flagging in public remarks. The moratorium could affect how BlackRock clients think about capital deployment across utilities, data center operators, and AI-exposed companies. The company's recent focus on AI-linked investment products and themes is also highlighted by this policy move. This development puts regulatory risk around AI infrastructure into sharper focus for BlackRock.

Melbourne's Nash Capital has acquired a 40% stake in Prime Group for $20 million, investing in the electrical contractor that provides cabling services to data centres tenanted by companies like Microsoft, Amazon, and Vantage Data Centres.

Prysmian has signed a long-term agreement worth up to €5.5 billion ($6.4 billion) with Molex to supply fibre optic cables for data centers over the next 10 years. The deal includes an upfront payment of €550 million and will see Prysmian invest €1.25 billion through 2031 to expand optical cable and fibre production, doubling its output capacity in the United States. This investment is expected to add 1,000 new jobs globally, with 600 in the US, and support Prysmian's push to become a 'one stop shop' for data centers.

The Australian tech company 14D is reportedly eyeing the acquisition of Aurora EV, a company specializing in electric vehicles, as well as expanding its data centre operations, indicating a strategic move to diversify and expand its presence in the market.

Prime Minister Anthony Albanese has called for stricter regulations on data centres in Australia, citing concerns over their power and water usage. The prime minister's speech follows the approval of several large-scale data centre projects, including a $911 million centre proposed by NextDC in Port Melbourne and a 350-hectare centre in Plumpton, which would require more electricity than Victoria's remaining coal-fired power stations. Albanese has committed to ensuring that future data centres are net generators of energy rather than users, and will be legally obliged to build new renewable generation to strengthen national energy resilience.

Prime Minister Anthony Albanese has acknowledged growing public unease over data centre construction in Australia, particularly around concerns about where they are built and their power and water usage. In a speech at the University of Sydney, Albanese committed to ensuring that new data centres would be net generators of energy rather than users, and would be legally required to build new renewable generation to strengthen national energy resilience. The NSW government has received proposals worth over $70 billion for data centres, but many have faced community opposition. Albanese's speech welcomed a national focus on regulating these issues, but the details of proposed legislation remain unclear. Tech sector companies are also working on innovative solutions to reduce water consumption and power demands.

Global oil prices have surged by over 9% in a single day due to resumed conflict in Iran, prompting concerns about fuel supply and prices in Australia. The federal government has left the door open to extending the fuel excise discount, but no confirmation has been made. Meanwhile, data centre investors are eyeing the Northern Territory as a potential location for new facilities, and former servicemen who served at Rifle Company Butterworth (RCB) in Malaysia from 1970 to 1989 are still waiting for entitlements to be paid out.

Residents in Lane Cove West have protested a proposal to build a data centre in the area, citing concerns about increased traffic and noise pollution. The proposed data centre would be built by Equinix, a global provider of interconnection and data centre services. The residents are seeking to block the development, which they claim will negatively impact their quality of life. The Lane Cove Council has received over 100 objections to the proposal, with many residents expressing concerns about the potential environmental impacts. The council is expected to make a decision on the proposal soon.

Prime Minister Anthony Albanese has unveiled national regulations for artificial intelligence and data centres, set to take effect in early 2027, but advocates are urging the government to introduce temporary protections to prevent data centre firms from rushing projects through before the rules take effect. The new framework requires data centre operators to cover the cost of new energy generation, but it only targets new centres, leaving a window for companies to avoid stricter environmental regulations. Climate Council chief executive Amanda McKenzie said the new regulations should be extended beyond new projects to those in the planning phase. The government has confirmed that existing projects will not be subject to the new rules, with Industry and Science Minister Tim Ayres describing a temporary pause as 'a pretty dopey position'.

The Australian government has confirmed the location of a $3bn data centre project, which will be developed by a major tech company such as Google or Amazon, and will bring significant investment and job opportunities to the region.

US President Donald Trump has criticized New York Governor Kathy Hochul's decision to impose a one-year ban on construction of large data centers in the state, arguing that it will drive investment and jobs to other states such as Texas, Florida, Alabama, and Arizona. The moratorium applies to data centers using 50 megawatts or more of power, and Trump claims that data centers are significant sources of tax revenue and investment for host communities. Hochul said the measure addresses threats of higher utility bills, natural resource depletion, and uncertainty for New York residents. Trump urged New York to reverse its policies, saying the state risked losing opportunities tied to artificial intelligence and emerging technologies.

The Partnered Health medical clinics in WA were affected by the cyber attack, which has prompted warnings to patients about potential data breaches. The exact nature and extent of the breach are not specified in the article. Patients are being warned that their personal information may have been compromised as a result of the attack. The incident is a reminder of the importance of cybersecurity measures for healthcare providers. Partnered Health has not commented on the incident, but patients are advised to be vigilant about monitoring their accounts and credit reports.

A West Australian data centre operator has expressed confidence that the new AI rules will not negatively affect its business. The regulations aim to ensure responsible development and use of artificial intelligence. The data centre operator believes the rules play to its hand, as it focuses on renewable energy and sustainable practices. The new rules are part of a broader effort by the Australian government to regulate AI and mitigate potential risks.

The headline suggests that Prime Minister Albanese is taking steps to mitigate the negative consequences of AI's increasing influence in society, which can be seen as a response to growing concerns about the impact of AI on various aspects of life. This could involve implementing policies or regulations aimed at addressing issues such as job displacement, bias in decision-making, and potential security risks. The move is likely an effort to reassure citizens and businesses that their interests are being protected in the face of rapid technological change.

The two Australian corporate heavyweights have partnered with the University of Sydney to conduct a research project aimed at building 'guardrails' for an increasingly automated economy. The study will run for three years, coinciding with Prime Minister Anthony Albanese's landmark policy speech on AI. This initiative comes as Australia prepares to navigate the challenges and opportunities presented by emerging technologies.

The institute will work with the Australian Signals Directorate and the CSIRO to track emerging AI developments and test frontier AI models. Its goal is to protect Australia from existential or catastrophic harm caused by AI. The institute's chief, Kate Conroy, has experience in AI ethics and risks. She was appointed to the role in May. The institute aims to serve as an early warning system for potential AI threats.

The Albanese government is consulting on a proposed $40 million national charger rollout program. Tesla argues that competition among EV charging providers is essential for efficiency and affordability. The company warns that an underused network owned by power network operators could block investment in faster charging options. This has sparked concerns about the effectiveness of the proposed program.