Australian Prime Minister Outlines National Rules for Data Centres

Prime Minister Anthony Albanese delivered a speech at the University of Sydney this week titled AI in Australia’s Interests. The address focused on data centres under construction across the country and the need for national oversight of their location, power consumption, and water use.

The NSW government’s Investment Development Authority has received proposals worth more than $70 billion for data centres and related infrastructure. Some proposals have faced local opposition, including a plan in North Katoomba that was withdrawn last month after resident objections.

Albanese stated that future large-scale data centres must generate more energy than they consume and must build new renewable generation plus firming capacity. He also said rules would govern water consumption by the facilities. The prime minister noted that decisions on location and resource use cannot be revisited after construction is complete.

He said the government intends to prevent data centres from increasing power prices for other consumers.

The speech did not specify the full text of forthcoming legislation. Current approval processes lack public detail on energy impacts and community input, according to the address. The prime minister indicated that a centralised Office of AI within the Department of Prime Minister and Cabinet could coordinate policy, though the effectiveness of that structure was not detailed.