The Northern Territory Environment Protection Authority (NT EPA) has paused its assessment of a proposed 19,150-hectare hyperscale data centre called Project Ares in the Barkly Region due to insufficient information about environmental impacts. The NT EPA expressed low confidence in Energy North's environmental management plans and listed potential significant impacts on air, water, land, and people if built. Environmental advocates are urging a halt until national AI standards, expected by 2027, are legislated.
Written locally by qwen2.5:14b on 2026-10-08,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
The Northern Territory Environment Protection Authority (EPA) has expressed low confidence in the environmental impact assessment of Project Ares, an ambitious data center project proposed by Energy North. The facility aims to be built on Murranji cattle station and would cover 19,150 hectares. If completed, it could annually extract up to 4 billion liters of groundwater and require substantial power infrastructure.
The NT EPA has paused the assessment process and requested more information from Energy North in an Environmental Impact Statement (EIS). Furthermore, the project requires additional approval from the national EPA before proceeding. Environmental advocates argue that Project Ares should be halted until federal AI standards are legislated to ensure better environmental protection measures.
Written for “NT Outback Data Centre Plan Criticized” on 2026-10-08,
grounded in this article and the 0 other(s) covering the same event.
In short:
The Northern Territory's EPA has paused assessment of an outback data centre while it consults with the national regulator.
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it → pause → regulator
Energy North is seeking environmental approvals to build a proposed 19,150-hectare data centre campus on Murranji cattle station.
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North → seek → station
Environmental advocates are calling for the project to be halted until the federal government's national AI standards are legislated.
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standards → call → ?
The Northern Territory's environmental regulator says it holds a "low level of confidence" in the environmental planning behind a massive outback data centre.
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it → say → centre
Energy North has applied to build a hyperscale data centre campus on Murranji cattle station in the Barkly Region.
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North → apply → Region
Called Project Ares, the facility would extract up to 4 billion litres of groundwater annually and require significant on-site power infrastructure.
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facility → call → infrastructure
The NT Environment Protection Authority said, if built, the data centre could have "a significant impact on the environment" and listed 10 potential impacts on air, water, people and land.
uncertain
centre → say → air
Responding to Energy North's environmental management plans in a publicly available document, the NT EPA said there was "insufficient information on most environmental aspects".
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EPA → respond → aspects
It said the regulator was not confident the environmental measures put forward by the company would be effective.
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measures → say → company
The application has not been rejected, and Energy North will now be required to submit more information in an environmental impact statement (EIS), and the NT EPA will consult further with the public and federal government.
Project Ares will also require assessment and approval from the national EPA before it can proceed.
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it → reject → EPA
The Albanese government is working on national data centre standards to be legislated in 2027 as it seeks to balance economic opportunities with environmental considerations.
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it → work → considerations
The new laws could also include mandates to prioritise the use of recycled water and force AI companies to reserve computing capacity for Australian businesses and researchers.
uncertain
laws → include → businesses
In a separate statement published yesterday, the NT EPA acknowledged this and said the approvals process may be affected by the new laws.
uncertain
process → publish → laws
"The Australian Government is developing policy expectations for data centres and AI infrastructure," it said.
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it → develop → centres
"As policy and industry evolve, requirements of proponents and environmental impact assessment processes will also evolve," the statement read.
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statement → evolve → proponents
Environment Centre NT's Bree Ahrens welcomed the NT EPA's decision and said no development should take place until "robust" national laws are in place.
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laws → welcome → place
She said the regulator's decision to approach the proposal with "a really high level of scrutiny" was not surprising.
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decision → say → scrutiny
"We've heard from people across the territory who are really concerned about the potential impacts of Project Areas on water, on climate and on really important habitats,"Ms Ahrens said.
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Ahrens → hear → habitats,"Ms
Energy North vice-president Daniel Hunter said the company agreed with the NT EPA's reasoning and said the project should be assessed thoroughly.
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project → say → reasoning
"One of the NT EPA's key concerns was that our measures to avoid and manage potential impacts weren't yet developed in detail," Mr Hunter said.
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Hunter → avoid → detail
"That's a fair assessment, and it's exactly the gap the EIS is designed to fill, with management plans and specific, measurable commitments, backed by detailed technical studies."
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EIS → design → studies
He said Energy North proposed to be assessed via an EIS in its original application.
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North → say → application
Mr Hunter said Project Ares would align with the federal government's proposed new laws.
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Ares → say → laws
"It will generate all its own power … so it won't draw on the existing electricity grid," he said.
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he → generate → grid
"We know the community has real questions about water and gas.
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community → know → water
We'll be engaging with the community on those questions, and the EIS will address them in detail."
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EIS → engage → detail