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Mega data centres in bed with big gas: how fossil fuels are powering the AI boom

Jun 8, 2026 •

Right now, AI data-centre mega-hubs as large as 350 hectares are being planned across Australia – that’s the equivalent of 175 MCG playing fields.

And the energy they need to fuel them is just as huge: more than the total output of an entire coal plant.

The solution? So-called “shadow grids” built in partnership between the data centres and big gas, where gas-fired power plants are placed directly on site, powering the centres and generating huge emissions in the process.

Today, Ketan Joshi, climate expert and co-author of a new Greenpeace report, on the relationship between fossil fuel companies and data centres, and Australia’s vulnerability in the AI race.

If you enjoy 7am, the best way you can support us is by making a contribution at 7ampodcast.com.au/support.

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Mega data centres in bed with big gas: how fossil fuels are powering the AI boom

1941 • Jun 8, 2026

Mega data centres in bed with big gas: how fossil fuels are powering the AI boom

Right now, AI data-centre mega-hubs as large as 350 hectares are being planned across Australia – that’s the equivalent of 175 MCG playing fields.

And the energy they need to fuel them is just as huge: more than the total output of an entire coal plant.

The solution? So-called “shadow grids” built in partnership between the data centres and big gas, where gas-fired power plants are placed directly on site, powering the centres and generating huge emissions in the process.

Today, Ketan Joshi, climate expert and co-author of a new Greenpeace report, on the relationship between fossil fuel companies and data centres, and Australia’s vulnerability in the AI race.

If you enjoy 7am, the best way you can support us is by making a contribution at 7ampodcast.com.au/support.

Guest: Climate expert Ketan Joshi

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7am is a daily show from Solstice Media.

It’s made by Arielle Richards, Atticus Bastow, Chris Dengate, Daniel James, Krystal Keller, Ruby Jones, Travis Evans and Zoltan Fecso.

Our theme music is by Ned Beckley and Josh Hogan of Envelope Audio.





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1941: Mega data centres in bed with big gas: how fossil fuels are powering the AI boom