Sarah Hanson-Young

Greens Senator Sarah Hanson-Young says while states and territories argue with the Federal Government over AI, the tech giants continue to exploit Australian resources. Photo: Region.

The Greens have called for an immediate moratorium on new artificial intelligence data centre approvals until the Federal Government gets its rules sorted and Federal Parliament scrutinises the legislation.

AI is fast becoming the hottest political topic in Australia, with Queensland and the Northern Territory opposing much of Labor’s proposed national framework for the further rollout of the industry, and the federal Opposition suggesting nuclear energy should be included in the energy mix for data centres.

There are currently about 160 AI data centres operational across the country, but Anthony Albanese has flagged his government’s intention to encourage more tech giants to invest further in Australia.

The Prime Minister added, however, that strict standards and mandatory rules would be developed to ensure new AI data centres put more energy back into the grid than they use, embrace renewable energy, protect water supplies, provide local job opportunities, and don’t rip off the work of Australian authors, musicians and artists.

He is setting up the Office of AI within his own department, the Department of Prime Minister and Cabinet.

But Greens communications spokesperson Sarah Hanson-Young said that’s all well and good, but Australian jurisdictions can’t get on the same page, so the brakes need to be applied.

She said the growing split between states showed that tech giants are already exploiting governments’ desperation to attract investment.

“Big AI is sitting back and laughing as governments fall over themselves in a race to the bottom to accommodate its every whim,” Senator Hanson-Young said.

“Queensland and the Northern Territory have both failed to get behind a national approach to ensuring data centres are powered by new renewable energy.

“Australia must present a united front in the face of this new extractive industry.

“Big AI is already looking for weaknesses it can exploit and playing governments off against each other.”

Senator Hanson-Young warned against allowing AI to become “another mining boom” where governments compete to give away Australian resources on the cheapest possible terms.

She said that, while parliament establishes national rules for data centres and AI, a moratorium had become necessary.

“We should not be rubber-stamping massive new data centres while parliament is still working out how to regulate the AI industry,” the Greens senator said.

“Australia must set the rules of engagement with Big AI, not the other way around.

“If we don’t get this right, we risk handing over our energy, water, land and natural environment to some of the world’s biggest corporations without getting a fair deal in return.

“Data centres must be powered by genuinely additional renewable energy and must not become a backdoor for new fossil fuel extraction.

“We cannot allow the AI boom to become an excuse for more gas, more pressure on our electricity grid and more destruction of Australia’s precious environment.

“We have seen what happens when governments let powerful corporations write the rules. This time, we need to put people and the environment first.

“Big AI can wait. Australia’s environment and communities can’t.”

The nation’s energy ministers met virtually on Tuesday (28 July), resulting in both Queensland and the NT pushing back against the Federal Government’s intention to legislate that large-scale data centres must underwrite new renewable power supply.

Queensland Energy Minister David Janetzki said his state would always support proposals that deliver affordable, reliable and sustainable power.

“However, we will not support underdeveloped ideas that hand increased power to Canberra at the expense of Queenslanders,” he said.

NT Energy Minister Gerard Maley said the Territory wanted to ensure that costs associated with data centre electricity demand were not passed on to consumers.

“While we will continue to engage in national discussions, any reforms must recognise the Territory’s unique electricity system and investment environment, rather than impose a one-size-fits-all approach,” he said.

National Cabinet meets in August to discuss progressing with national standards, with the PM hoping to reach agreement with all state and territory leaders on the issue.

Meanwhile, the Coalition has been talking up the potential for nuclear energy to power new AI data centres in Australia.

Shadow energy minister Dan Tehan has pointed to tech giants Google and Amazon investing in nuclear energy options in the United States and said the same should be considered in Australia.

Deputy Nationals leader Darren Chester has suggested it is inevitable that future data centres in Australia will be powered by nuclear energy to some degree.

Labor remains opposed to lifting the moratorium on nuclear energy in Australia.

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