Australia to force AI datacenters to be net power generators

Albanese sets out aggressive AI rules

Australian Prime Minister Anthony Albanese has outlined a national AI policy push that would drastically reshape how big tech operates in the country, from power and water use to copyright.

In a landmark speech, Albanese said builders of large new datacenters will be required to become net generators of energy, not just consumers, and that AI firms will need agreements with Australian artists and media before using local content.

“Let me make this crystal clear – not everything produced in Australia is up for grabs,” Albanese said, referring both to creative works and the nation’s energy and water resources.

Datacenters must produce more energy than they use

Albanese said the government will legislate so that operators of big new facilities fund electricity generation projects sufficient to cover their usage and pay for associated work to bolster energy grids.

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The policy also requires datacenter operators to pay for water infrastructure and make minimal environmental impacts.

The Prime Minister wants Australia’s states and territories to sign up, promising expedited approval processes and consistent operating standards nationwide for datacenter builds.

He argued that clear, country-wide rules will make Australia more attractive for inbound investment, helping AI companies plan new datacenters — and potentially offsetting the tougher requirements compared to other jurisdictions.

Content use without consent is “theft”

On data and copyright, Albanese took direct aim at unlicensed training on Australian content.

“Australian writers, musicians, artists and journalists, must retain ownership and control of their work,” he said. “Anything less is theft.”

He said the approach “will ensure Australian writers, artists and journalists retain ownership over their work, meaning no company should use Australian creative works to train AI without the artist’s control.”

Albanese added that no country has yet given artists and rights-holders sufficient control over how AI companies use their works.

He did not detail how this control will be enforced, but framed the effort as a way to get ahead of AI before big players get too much power.

Learning from social media regulation

To justify early intervention, the PM asked the audience to imagine how much better off Australia would be if it had regulated social media a decade before the 2024 ban on children aged under 16 accessing such services.

He likened the AI plan to historic labor movement reforms, citing achievements such as a minimum wage and a fixed working week.

Without strong AI rules, he warned, Australia risks outsourcing its security to big tech companies.

“If we are always dependent on someone else, somewhere else, we will be vulnerable,” he said.

Jobs, security, and “Australia’s Interest”

Albanese argued that with strong policy, Australians should view AI not as a threat to jobs, but as a driver of new employment, beyond the short-term boom from datacenter construction.

The broader AI framework, he said, is intended to make Australia stronger rather than reliant on overseas platforms and infrastructure.

Wrapping his speech, the PM suggested that AI can stand for “Australia’s Interest” as well as “artificial intelligence.”