Australia plans AI office, stricter rules on data centres and creator rights

Anthony Albanese will create an Office of AI inside the federal government and impose new national rules on large data centres, requiring them to minimise water use and underwrite or supply their own power. The prime minister said the aim was to stop AI growth from pushing up household bills, with state and territory leaders to be asked to sign off at a national cabinet meeting next month and legislation expected early next year.

The same package reaches into copyright. Albanese said Australian musicians, writers, artists and journalists must keep control over work used to train AI models, and that companies would not be allowed to use Australian books, music, art or news without the creator’s control. He said anything less would amount to theft, placing creator rights alongside the physical demands of the technology in a single policy push.

On March 23, the federal government released expectations for data-centre and AI infrastructure developers. Projects should prioritise the national interest, support the energy transition, use water sustainably and responsibly, invest in Australian skills and jobs, and strengthen research and local capability. Operators should underwrite new renewable power supply, pay their full share of new grid connections so costs are not passed on to consumers or businesses, and support demand flexibility.

South Australia moved in the same direction in June, when Premier Peter Malinauskas said the state would draft legislation to regulate AI data centres amid concerns about water and energy use. The state wants to attract billions of dollars in investment and hundreds of ongoing jobs, while keeping energy use manageable and avoiding any negative impact on consumer bills.

Australia already has 162 data centres operating and more than 90 projects in the pipeline, the Climate Council said, and warned that if rising demand is met with gas rather than renewables it could help drive a 26% increase in wholesale electricity prices in New South Wales and a 23% rise in Victoria by 2035. Greenpeace Australia Pacific has called for a moratorium on data-centre approvals until guardrails are in place, arguing that a frenzied rollout could derail the renewable-energy transition.