Will AI Data Centre Rules be Imposed on the States?
ABC Listen
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Details
- Date Published
- 15 Oct 2024
- Priority Score
- 3
- Australian
- Yes
- Created
- 24 Aug 2026, 04:01 am
Description
The federal government is intending to push ahead with new national energy and water rules for AI data centres.
And despite opposition from some states and territories, it seems the government's willing to go over their heads and force the changes.
Summary
The Australian federal government is proposing national energy and water standards for AI data centres to manage the significant resource demands of expanding frontier AI infrastructure. This initiative aims to mitigate social and environmental risks, such as grid instability and water scarcity, which could otherwise lead to public backlash similar to trends observed in the United States. While the policy focuses on the physical sustainability of AI development, it represents a critical step in Australian AI governance by establishing federal oversight over the essential infrastructure that powers large-scale AI models.
Body
The federal government is intending to push ahead with new national energy and water rules for AI data centres. And despite opposition from some states and territories, it seems the government's willing to go over their heads and force the changes.CreditsMike Kermode, ReporterImage DetailsThere are already dozens of data centres around Australia, and their number is expected to swell(ABC News: Matt Roberts)Program:More from ABC News Top StoriesTranscriptMike Kermode: The federal government hopes to settle new energy and water rules for massive AI data centres at a national cabinet meeting this week. But not everyone's a fan of the proposed standards, which could force the government to create laws to override the centres. So what's the government proposing? And why is it an issue for some? In cities and regional areas across the country, the AI boom's driving the construction of scores of large-scale data centres. Right now there's over 160 of them, but that number's expected to balloon. Thing is, they need a huge amount of energy to operate. It's estimated that the centres currently use 2% of Australia's energy. That's estimated to be around 6% by 2030, and possibly as high as 13% by 2040. As part of a big speech he did on AI back in July, Prime Minister Anthony Albanese said he wanted new data centres to deliver at least as much energy into the grid as they take out. The government wants to do that through setting standards by which the centres have to source their power from new renewable energy projects, backed by gas and batteries as firming sources. Now the government's hoping to institute those changes. But not everybody's on board with it. Last month, both Queensland and the Northern Territory both knocked back several elements of the government's framework for AI. They said they wouldn't sign on to a standard that ties data centres to renewable projects at the exclusion of coal and gas. That data centres should be energy agnostic. And Queensland Premier David Crisafuli wants his state to develop its own framework to ensure communities and local councils also have a say in data centre proposals. But Federal Energy Minister Chris Bowen has warned the government will legislate to ride over the top of those who oppose the standards.Chris Bowen: What we're not going to do is let one state or one territory dictate to the rest of the Commonwealth or the other states indeed, and the other states were very strong in their views supporting the Commonwealth, that their way is going to be the lowest common denominator.Mike Kermode: So why is the Albanese government so keen to override the states if need be? Firstly, setting minimum standards for data centres would provide investors more certainty on what to expect when dealing with Australia. Also it's hoping the new rules will help get more renewables projects over the line. That's something that's got the opposition bristling. Dan Tehan is the Shadow Energy Minister.Dan Tehan: Chris Bowen's renewable energy target is failing. He isn't getting the investment in large scale renewables in wind and in solar that he needs to meet his targets. So what he's doing is making up for that abject failure by now requiring data centres to fill the gap and fill this investment gap. That is not the way you should go about building a new sector of our economy.Mike Kermode: But in laying down these rules, the government also wants to shield against a US style populist backlash to data centres themselves. In the States, dozens of the facilities have been blocked or delayed by local opposition... opposition related to strained electricity grids, anxiety over water scarcity or people just feeling like they're being railroaded in the pursuit of big tech's AI ambitions. Michael Bommarito is the president of the Institute for the Advancement of Legal and Ethical AI in the US.Michael Bommarito: It's incredible because it started as little to nothing, fragmented groups, small opposition concentrated in a handful of backwaters, to be honest. And over the last, in particular, six months, this has crystallised into possibly one of the top issues at the local, state and federal political level.Mike Kermode: Back in Australia, with AI data centre growth set to boom, the concerns around the centres and the resources devoted to them are only going to grow. The Prime Minister will seek agreement on the national standards at Wednesday's National Cabinet meeting.