Queensland power prices tipped to rise under data centre plan

July 8, 2026

Queensland households could face a substantial hit to their cost of living, with wholesale electricity prices projected to jump by 14 per cent due to the rapid expansion of the data centre sector.

The booming data industry, which is driving technology investments and employment across the state, is facing intense scrutiny over its massive power consumption. A new ‘Clouded Future‘ report from the Climate Council reveals that the Queensland Government’s push to allow these facilities to expand without mandating new energy generation requirements could heavily penalise everyday consumers.

According to the research, failing to properly manage the energy demands of the data boom will cause wholesale power prices to surge by 14 per cent in Queensland by 2035. Other states are expected to face even steeper increases, with wholesale power prices projected to rise by up to 26 per cent in New South Wales and 23 per cent in Victoria.

The projected price hikes threaten to worsen the cost of living pressures currently stretching household budgets. The report indicates that the Queensland Government’s decision to break away from a call by all other state and federal energy ministers for national regulation on the sector will ultimately fuel these rising energy prices.

Climate Council chief executive Amanda McKenzie said that safeguarding the energy grid is vital to keeping electricity affordable for families and protecting the economy.

“Requiring big tech to build new renewable power protects the reliability and affordability of our grid,” Ms McKenzie said.

The report highlighted how unchecked commercial expansion overseas has already created severe financial pressure for residents, serving as a warning for local policy makers.

“In the US unchecked data centre growth has led to massive spikes in power prices and damage to public water resources. Queensland has the opportunity to do things differently,” Ms McKenzie said.