Senator David Pocock questions ‘long-term benefit’ of power-hungry data centresAn independent senator has questioned what long-term financial benefit Australians will receive from data centres ahead of a national cabinet meeting.Ria Pandeyless than 2 min readAugust 26, 2026 - 8:30AMNewsWireIndependent senator David Pocock has questioned what “long-term benefit” Australians will reap from power-hungry data centres, ahead of the federal government’s formal discussions with its state and territory counterparts on guardrails for the sector. Prime Minister Anthony Albanese is expected to outline the government’s new national standards for AI, including minimum obligations around water and energy usage for data centres, at a national cabinet meeting on Wednesday afternoon.Anthony Albanese has declared that Australia must ‘harness the positive opportunities’ of AI.The framework is expected to mandate developers to power the centres using renewables, a push vehemently opposed by the Queensland and Northern Territory governments. Speaking to Channel 9, Senator Pocock described data centres as an “opportunity” but warned there were “clearly issues around energy, water and social licence”. “One of the big things that I haven’t heard any leaders talking about is what is the long-term benefit? Where is the data centre tax or the return to the Australian people?” he said. “Because we’ve seen this play out before, we have big industries investing a huge amount of money. Others you may likenewsnewsBut independent senator David Pocock has warned of consequential impacts on water and energy. Picture: NewsWire / Martin Ollman.“And then over the long term, these multinationals are very good at profit shifting and not paying tax here in Australia.”Building AI centres would also place pressure on the construction workforce, Senator Pocock warned, and likely set up a competition for labour with housing amid an already-sluggish rate of delivery. Opposition Leader Angus Taylor conceded “extra electricity” would be required to support any data centres built in Australia, but criticised what he described as the government’s mistaken approach to the problem.“We need to have an electricity market that requires that, that demands the extra energy and capacity into the system,” Mr Taylor told the ABC. More CoverageWhat Aussie AI boom hinges onNathan SchmidtSenate recommends bolstered eSafety powersRia Pandey and Nathan Schmidt“But it should be technology neutral. This idea that you pick one technology and that’s the answer to everything … If it’s not technology-neutral, it will raise the cost of energy for all Australians. “That’s why the government is making a mistake in what it’s proposing here.” More to comeJoin the conversationAdd your comment to this storyTo join the conversation, please log in. Don't have an account? RegisterJoin the conversation, you are commenting as LogoutMore related storiesCamerasHow new 360 camera can edit your videos for youThe battle between camera makers is hotting up, delivering content creators some of the most incredible tools seen in years.Read moreInnovationWhat Aussie AI boom hinges onAustralia risks falling living standards unless it wins the global race for AI investment, Anthony Albanese has warned.Read moreMilitary‘Thousands dead’: Chilling Aussie warningExperts have warned that a naval base in Western Australia has emerged as a potential nuclear target, leaving Aussie lives on the line.Read more