Australia is moving to establish mandatory national standards for data centres to minimize water use and require operators to fund their own power supply, as part of a broader effort to centralize oversight of artificial intelligence (AI).

Prime Minister Anthony Albanese, speaking at the University of Sydney on Wednesday, warned that Australia has a narrow window to set AI's "social licence" before major investments become entrenched. He acknowledged current gaps and risks in the fragmented regulatory approach to AI technology.

Albanese confirmed he will seek agreement from states and territories for "clear, consistent and mandatory" Australian data centre standards at the national cabinet meeting next month. Legislation for these standards is expected to be introduced to parliament early next year. The new national standards aim to replace the existing piecemeal regulations involving multiple government levels, providing greater certainty for investors and ensuring community confidence in major developments.

Currently, South Australia is the only state with a dedicated data centre framework. Meanwhile, Queensland's government has expressed concerns, stating further work is needed before adopting any "underdeveloped national proposals" related to renewable energy requirements.

The prime minister also addressed copyright issues, assuring Australian writers, musicians, artists, and journalists that they will retain ownership and control of their work. He emphasized that creators will have the right to set prices in any copyright agreements with AI companies, while the government will cooperate with tech firms in sharing factual information.

Amanda McKenzie, chief executive of the Climate Council, highlighted the environmental impact of the AI-driven surge in data centres, describing it as "profound" for Australia's energy system and environment. She urged the government to "adequately regulate" this infrastructure.

Albanese stated, "If we mobilise our resources and coordinate our efforts, if we move with the urgency that the speed of this change demands, if we build to match the scale of the opportunity that this moment presents, and if we do it the Australian way, true to our values and our standards, we can make AI work in Australia's national interests."

Sources