Anthony Albanese announced plans to make it a legal requirement for AI data centres to underwrite new energy generation, along with the creation of an AI office within his department, in a major speech on Wednesday, July 15.
“We will create a legal obligation for the next generation of large-scale data centres to underwrite new power supply,” Mr Albanese said.
“To pay their full share of grid connection, so no costs are passed on to homes or businesses.
“And to put at least as much energy into our grid as they take out of it.
“To be net-generators, not net-users.
“To build new renewable generation — and firming — to strengthen our national energy resilience.
“And ensure data centres do not increase power prices for Australians.
“Australia is the sunniest continent on earth but we’re also the driest.
“Which is why our rules will require data centres to minimise their water use, maximise their energy efficiency, and pay for any additional water infrastructure required.”
Speaking in Sydney, Mr Albanese compared AI's impact on society to that of commercial air travel 100 years ago.
He promised to take a leading role in the AI roll-out after months of pressure from the tech industry and advocates concerned about the rapid shifts in the global economy, declaring an end to the government’s current case-by-case approach.
Mr Albanese vowed to pass legislation on mandatory standards for AI by early 2027, following a national cabinet process with state and territory leaders.
Expectations for large AI data centres, released by the government in March, would be strengthened, with legislation requiring developers to underwrite new power supply.
Mr Albanese said Australia would be the first country in the world to adopt a single, national framework for managing AI.
