Why are Australian gas producers promoting the Northern Territory as a location for AI data centres?

Gas producers and advisers are promoting the Northern Territory because developers there can bypass grid-connection queues stalling projects in the southeast by building their own power generating units—enabling 'behind the meter' generation without needing connection applications, transmission line augmentation, or waiting four to eight years for grid access.

What is the significance of the Beetaloo sub-basin in this proposal?

The Beetaloo sub-basin is Australia's only shale gas province, located 500 km south of Darwin, and has just begun delivering its first commercial gas volumes; it anchors proposed data centre developments, with Beetaloo Energy holding exclusive rights to a site near Darwin for a 2-gigawatt campus requiring ~200 terajoules of gas per day per gigawatt, and Tamboran Resources having started piping 40 TJ/day to Darwin, with Beetaloo Energy adding another 15 TJ later this year.

Australian Gas Producers Target Northern Territory to Bypass Data Centre Power Queues

Sep 2, 2026

Australian gas producers plan to build independent power units in the Northern Territory to bypass grid queues for AI data centres, utilizing new shale gas supplies from the Beetaloo sub-basin by companies like Tamboran Resources and Beetaloo Energy.

reuters

2026-09-02

Australian Gas Producers Target Northern Territory to Bypass Data Centre Power Queues

Australian Gas Producers Target Northern Territory to Bypass Data Centre Power Queues

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