The federal government has introduced new standards setting out clear rules for large data centres.
The government today announced a set of Australian Standards for AI, building on the Data Centre Expectations.
It includes a legal obligation by data centre operators to underwrite their own new power supply, pay their full share of connection costs so energy bills are not impacted, reduce power when needed to strengthen the grid, and be as water efficient as possible.
The federal government will also work with States and Territories to ensure large data centres are built in the most appropriate locations, and with input from local communities.
Effective today, the Office of AI will be established within the Department of Prime Minister and Cabinet to accelerate implementation of the Australian Standards on a national level.
The government’s approach will be considered by National Cabinet in August, with standards expected to be legislated early next year.
The standards will deliver a simple, consistent regulatory framework for large data centres and AI training and be the first to be legislated by a government worldwide.
Prime Minister Anthony Albanese said this framework is about protecting Australia’s national interests ensuring certainty for growth, jobs and investment.
The Climate Council said the government must enforce its directive that new Australian data centres bring additional renewable energy to the table from the get-go.
Climate Council CEO Amanda McKenzie said the AI-driven surge in data centres will have a profound effect on Australia’s energy system, and unchecked, this growth could mean soaring prices and rampant climate pollution.
“Australia is a very attractive location for data centre proponents, but it means that we need strong guardrails to protect our standard of living; we need these things to work for us,” McKenzie said.
“Accelerating the roll-out of proven renewable energy is the only way to keep prices as low as possible, ensure grid stability, and slash climate pollution to better protect our communities, economy and environment from worsening climate disasters.”