Australia Weighs AI Data Centre Safeguards
Australia Weighs AI Data Centre Safeguards

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Arabic version: أستراليا تدرس ضوابط لمراكز بيانات الذكاء الاصطناعي

According to ABC News, Australia’s federal government is seeking to capture investment from artificial intelligence and data centres while avoiding the community and cost-of-living backlash seen in the United States. Concerns raised in US communities have included water use and rising electricity bills, while ballot measures restricting data centres were approved in several states.

There is broad agreement in Canberra that technology companies building data centres should provide their own energy supply, manage water use efficiently and transparently, and consult communities. A parliamentary committee examining artificial intelligence is due to deliver its final report within weeks. Its work, alongside a review into the OpenAI Medicare data breach, will inform national AI standards flagged by Prime Minister Anthony Albanese in July.

However, agreement on broad principles does not settle disputes over individual projects or energy policy. Queensland Premier David Crisafulli has said coal-powered data centres can meet requirements to protect electricity consumers, while federal Energy Minister Chris Bowen has maintained that only renewables will stack up. Sydney Water has warned that the industry could consume up to a quarter of the city’s drinking water by 2035.

Local opposition has already emerged around proposed developments. Liberal MP Garth Hamilton has said residents raised concerns about a proposed $32 billion data centre near Dalby, Queensland, where Anthropic has agreed to use part of the project. In Melbourne’s outer north-west, Labor figures Sam Rae and Alice Jordan-Baird criticised a proposed 350-hectare, 2.4GW data centre at Plumpton over potential effects on energy, water, traffic and noise.

Some crossbench members and the Greens support a moratorium on new projects until proposed AI laws are in place, but Labor is resisting that approach. Independent ACT senator David Pocock has called for an immediate 5 per cent levy on all data centres, while Assistant Minister Andrew Charlton has argued Australia should secure computing power to support domestic innovation. The central challenge is whether investment can deliver lasting local benefits while retaining community trust.

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