Prime Minister Anthony Albanese is scheduled to hold talks with state premiers on Wednesday to address concerns regarding national controls on datacentre developments. Mr Albanese intends to assure premiers that new approval laws will complement existing state regulations.
The Prime Minister plans to introduce significant legislation next year, aiming to ensure the economic benefits of artificial intelligence (AI) are widely distributed. This new law is expected to establish strict copyright rules for AI businesses and impose standards for security, safety, and skills development.
The meeting follows a forecast from the Australian Energy Market Operator (AEMO) indicating that datacentre power use is projected to increase seven-fold over the next decade. AEMO's annual Electricity Statement of Opportunities report states that datacentre electricity demand is expected to grow from 5 to 34 terawatt hours by 2035-36, potentially rising from 3% to 13% of overall consumption.
Mr Albanese will seek agreement on a plan to legislate nationally consistent minimum obligations for datacentres. These obligations would require datacentres not to increase energy prices, to meet their own infrastructure costs, and to minimise water use. The proposed rules also aim to minimise the impact of new datacentres on local communities by ensuring appropriate sizing and location, away from residential, educational, or agricultural sites.
Projects approved before the new rules are implemented will remain subject to existing state and territory laws. Queensland Premier David Crisafulli and Northern Territory Chief Minister Lia Finocchiaro have expressed opposition to federal rules that would mandate datacentres be powered by renewable projects, excluding coal and gas.