Nationals MP David Littleproud has called for the duplication of a 750MW coal-fired power station to underpin the energy requirements of a proposed $32bn data centre.
AI giant Anthropic has signed a deal to use part of the data centre which is proposed for Queensland's Western Downs region.
The proposed data centre remains before the Western Downs Regional Council planning team.
Queensland should develop a new coal-fired power station to help "bolster" the power needed for what would be the country's largest data centre, Nationals MP David Littleproud says.
AI giant Anthropic signed its first deal in Australia to use part of the $32bn data centre hub which has been proposed for the Darling Downs, west of Brisbane.
The facility, which is still subject to council approval, would be built near Dalby by Singaporean developer Zerra DC.
Anthropic has said it wants to start using the centre from 2027.
Mr Littleproud said a duplication of the 750MW Kogan Creek Power Station would help power the proposed data centre, which could draw as much power as 1.5 million average Australian households.
That's the equivalent of 25 per cent of Queensland's current daily electricity use.
Mr Littleproud also backed the use of nuclear power in Queensland to help underpin supply.
"We're getting to a point where technology is outstripping energy supply, and what we're going to have to do is be bold enough and courageous enough to look to what the rest of the world is doing," he said.
Asked about concerns held by the community about the amount of water required to run the proposed data centre, Mr Littleproud said it would use "effectively six Olympic swimming pools" worth of water every year.
"They've been able to give me those assurances in writing but if that changes obviously I will have a concern."
Mr Littleproud said the project would deliver about 1,500 jobs during the construction phase and 1,400 ongoing jobs.
Katter's Australia Party MP Robbie Katter has urged the government to "concentrate on the industry you already have".
"We're starved of cheap and reliable energy out in the north west mineral province right now and we're not allowed to touch our water supplies for agriculture," Mr Katter said.
"It does raise a fair bit of frustration with us as regional MPs that have been fighting this stuff for years but some big multinationals come in and say 'we want to build data centres' and everyone's fawning over them and wanting to roll out the red carpet."
"We need to count what the real benefit of this is in the long term and measure it up against those existing industries that have always been good providers for Queensland."
Mr Katter said a lack of regulation in the AI space as well as warnings recently issued by industry leaders "does send a shiver down your spine".
"It does feel like we're rocketing down that road," Mr Katter said.
"We don't want to be luddites and stand in the way of technology but it does feel like no one has a handle on what this means and seems a little bit too excited about the up-front commercial value."
Planning Institute of Australia's Head of Policy and Advocacy, Nicole Bennetts, said the size of the proposed data centre demonstrates the "scale of change that Australia needs to plan for".
Ms Bennetts said there are around 165 data centres in operation in Australia and another 225 in the development phase.
She said the Australian Energy Market Operator (AEMO) expects data centres to account for about 13 per cent of the country's energy supply by 2036, up from three per cent today.
Ms Bennetts said "up-front, strategic planning" is needed to deal with the cumulative impact on Australia's land, infrastructure and energy.
"We're calling for a nationally consistent approach for what makes a well located, large-scale data centre," she said.
"We need to move Australia from responding to data centres proposal by proposal, and proactively plan for the places the digital economy will need."