Data centres form a central cog of the Federal Government’s AI framework announced this week, where new protocols will be put in place to sustainably power these facilities.
Under the new framework, data centres would be legislated to underwrite their own new power supply, pay the full cost of grid connections, reduce electricity demand when required to support the power system, and operate as efficiently as possible with water.
The Federal Government said the proposed Australian Standards for AI – which it suggests will be world-first legislation – are designed to ensure the country can harness the benefits of AI while protecting consumers, supporting local industries and safeguarding critical infrastructure.
The Government will also work with state and territory governments to ensure large data centres are developed in appropriate locations and with input from local communities.
An Office of AI has been established within the Department of the Prime Minister and Cabinet, effective immediately, to oversee implementation of the framework nationally.
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The proposed standards will be considered by National Cabinet in August, with legislation expected to be introduced early next year.
Prime Minister Anthony Albanese said the framework was designed to give industry certainty while ensuring AI development aligns with Australia’s national interests.
“This framework is about protecting our national interests and ensuring certainty for growth, jobs and investment,” he said.
Albanese said establishing high national standards would help Australia shape the future of AI rather than react to it.
Industry, Innovation and Science Minister, Senator Tim Ayres said the framework would support investment while strengthening Australia’s resilience.
“Australian Standards for AI strengthen Australia’s framework to make sure AI investments are on Australia’s terms and strengthen our resilience, security and economy,” he said.
The government said it will outline its broader AI consumer safety priorities in the coming weeks, building on the recently established AI Safety Institute.