As the AI industry arrives in the Northern Territory, Australia's most isolated and least populated jurisdiction wants to grow its gas and data sectors at the same time.

The NT government has thrown its support behind both industries as 12 data centre proponents eye a range of locations from rural blocks near Darwin to vast cattle stations.

The companies have arrived just in time to take advantage of natural gas due to flow from the Beetaloo Basin later this year.

It has sparked alarm from environmental campaigners, who say it will undermine Australia's climate targets.

A gas-fired data centre boom would also take place shortly after the federal government outlined expectations that new data centres and AI infrastructure supported the energy transition.

Water use is also front of mind for green groups and the cattle industry, which holds "great concern" that an AI revolution could put extra pressure on remote infrastructure.

Gas-fired tech industry

Development of gas fields in the Beetaloo Basin has helped trigger a rush of data centre proposals, which recently prompted government minister Robyn Cahill to claim the Territory could become the "data centre capital of the globe".

Data centres require considerable amounts of constant power, and developers are keen on the prospect of consistent gas flows from the Beetaloo, 500 kilometres south-east of Darwin.

The industry's momentum is so great, gas company Beetaloo Energy has launched a wholly owned subsidiary, Beetaloo Digital. The company was given exclusive planning rights for a parcel of land near Darwin by the NT government for a 2-gigawatt data centre worth $40 billion.

Another proposal, put forward by Energy North for the remote Murranji Station, would use solar and gas-fired energy to generate 1 gigawatt of power.

The power requirements of both are significantly higher than the total peak demand of the Darwin-Katherine power grid.

Environment Centre NT rural areas campaigner Pauline Cass said outer-Darwin residents, like herself, were worried about the environmental consequences.

"How are they going to get their power? How are they going to get their water?" she said.

"I'd say the majority of people are against hydraulic fracturing for shale gas.

"[Data centres] are enabling another industry that we're opposed to."

The federal government is working on new AI laws which would ensure large data centres minimise water usage and underwrite or supply their own power to ease pressure on local grids.

Energy North chief executive Scott Criddle said government policy lined up with the company's strategy for its Murranji plans.

"I think we're basically hitting every one of the government's policies," he said.

"We're not taking from the grid. We're building our own energy source and basically doing it behind the meter, which is what we think long-term is the right strategy."

He said the project would eventually source most of its power from a 6,000–7,000-hectare solar farm, but gas would be the primary source of power at first.

Beetaloo Energy managing director Alex Underwood said the company would consider varied power generation options but could not say what proportion would be renewable.

"I actually think these two industries could be working very closely together to make it happen," he said.

Cattlemen watching closely

Data centres also require large volumes of water to ensure they do not overheat, with Energy North's operation requiring up to 4 gigalitres per year.

The NT government is confident it has strong water supply and regulation, with minister Robyn Cahill going as far as to say the Earth's axis is disrupted by substantial wet seasons — a claim later debunked on ABC radio.

NT Cattlemen's Association chief executive Romy Carey said managing possible competition for water was a key priority for cattle producers.

"We've got quite well-established water allocation and licensing frameworks here in the Territory," she said.

"Any data centre seeking to access ground water … would be required to undergo that statutory assessment process, in that [process] existing users must be considered."

Energy North said the 4 gigalitre figure was a "worst-case scenario".

Ms Carey said the race to build the operations could further burden the Territory's "fragile" road network and scarce health services, as thousands of workers flocked to the region.

"Adding significant extra freight to those networks, and the damage that will do to them … is of great concern," she said.

"It's already quite difficult to get GP appointments in regional areas, so adding additional workforces in the thousands … is also of concern."

The road ahead for the NT's burgeoning data centre industry is long, and development will take years, but likely hurdles and public expectations have already come into view.