CANBERRA — Australia will introduce new requirements for large artificial intelligence data centres, including obligations on power use, energy infrastructure and water efficiency, as the government moves to establish national standards for AI development and deployment.
Prime Minister Anthony Albanese said the federal government would create Australian Standards for AI that incorporate rules for large-scale data centres, building on previously announced expectations for AI infrastructure developers. The proposed framework is intended to ensure that the expansion of AI facilities does not place additional pressure on electricity networks, water supplies or communities.
Under the planned requirements, large data centres would face legal obligations to support their own new power supply, cover their share of grid connection costs, reduce electricity use when needed to strengthen the grid, and improve water efficiency, according to government statements. The government also said it would work with state and territory authorities to guide where major facilities are built and include local community input in planning processes.
The measures come as demand for computing capacity increases globally, driven by the rapid growth of artificial intelligence applications. Australia has sought to attract investment in digital infrastructure while addressing concerns about the impact of large data centres on energy demand, environmental resources and local infrastructure.
The Department of Industry, Science and Resources previously outlined national expectations for data centre and AI infrastructure developers, including supporting Australia’s energy transition, using water responsibly, investing in local skills and strengthening research capability. Those expectations were developed alongside industry, utilities, states and territories, and other stakeholders, the department said.
The government’s broader AI framework will also address issues beyond data centre operations, including the use of creative works in AI training and wider safeguards for artificial intelligence systems. Albanese said the framework was designed to allow Australia to benefit from AI while maintaining protections for workers, communities and the environment.
The announcement follows growing international attention on the infrastructure demands of AI, with governments examining how to balance investment in advanced computing facilities with electricity availability and environmental considerations.
The federal government said the proposed standards would be developed through further consultation and legislative processes, with the national framework expected to provide mandatory rules for future large-scale AI data centre projects.
