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Albanese seeks to quell datacentre disquiet as climate expert warns ‘we’ve got one shot to get the rules right’

Albanese seeks to quell datacentre disquiet as climate expert warns ‘we’ve got one shot to get the rules right’

Summary

Prime Minister Anthony Albanese plans to introduce new national laws next year to regulate datacentre developments across Australia. These laws aim to balance the economic benefits of AI and datacentres with energy use, local impacts, and fair protection for creators against AI misuse.

Key Facts

  • Datacentre electricity use in Australia is projected to grow seven times over the next decade, from 5 to 34 terawatt hours by 2035-36.
  • There are currently 165 datacentres operating nationwide, with 225 more under development.
  • The new laws will require datacentres to not push energy prices up, cover their own infrastructure costs, and reduce water use.
  • Datacentres must be located away from homes, schools, and farming areas to minimize community impact.
  • The government wants to introduce strong copyright protections for creative works used by AI systems.
  • Some conservative state leaders, including Queensland and Northern Territory, oppose parts of the federal plan.
  • Projects already approved before these new laws come into effect will continue under existing state and territory rules.
  • Australian Energy Market Operator (AEMO) expects an improved power supply outlook due to new generation and storage projects despite closing coal plants.
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