New data centre rules revealed as Anthony Albanese heads to US to promote Australia’s AI blueprint

A new consultation paper on Australia’s AI standards will allow large data centres to use “gas, batteries, or hydro” backup power but only if it’s fully offset by bringing forward new renewable generation.

Innovation Minister Tim Ayres released the discussion paper on Friday — two months after Anthony Albanese first announced he would legislate AI standards at a landmark speech in University of Sydney.

It comes as the Prime Minister travelled to the United States on Friday to meet with Californian tech executives before raising his approach to AI with other world leaders at the UN general assembly in New York next week.

Mr Albanese had outlined strict new power usage obligations for tech companies wanting to build AI data centres Down Under power usage in his July 15 address but had explicitly focused on renewable energy.

But after Queensland and the Northern Territory governments had pushed back and insisted fossil fuels should be part of the equation, the government had pivoted its position following a National Cabinet meeting in late August.

“The Commonwealth’s mandatory standards will require large data centres to bring forward new renewable generation to fully offset their energy demand with appropriate firming through gas, batteries or hydro,” the consultation paper stated.

While the paper includes standards for large data centres over 30MW on energy, water, and land-use — it excludes smaller facilities from the national framework.

The paper suggests that Australia could also explore more onerous requirements for even larger data centres above 100MW, or a cumulative portfolio equivalent of 150MW.

Under the proposed framework, tech companies would have to ensure no net costs are imposed on consumers and communities.

It includes through covering “transmission, network and other utility services costs” so that prices do not increase for other energy and water users as a result of data centre activity.

The paper also requires companies to minimise consumption while citing a report by Australia’s largest water utility that data centres could consume up to 20 per cent of Sydney’s drinking water by 2035.

It reaffirmed the government’s commitment to ensuring Australian creators are able to exercise control over what material is used by models for training and that they receive payment if their work is used.

However, it didn’t explicitly mention how the rate of compensation would be determined or how AI developers should track content, gain consent, or opt-out content.

It pledged that Attorney-General Michelle Rowland would lead further consultations with stakeholders both on options to “incentivise AI training” while “providing strong copyright protections”.

The PM will meet with former Apple chief executive Tim Cook in Silicon Valley to discuss parental control measures being rolled out before travelling to New York for the international forum — which is the largest annual gathering of world leaders.

It comes after Mr Albanese used the same UN’s high-level week of meetings last year to spruik his world leading under-16s social media ban to other world leaders, with at least 20 countries pledging to follow suit.

Several bilateral meetings with world leaders will also take place on the sidelines of the summit as Australia ramps up its bid for a seat on the UN’s Security Council.

Australia is bidding to become one of the 10 non-permanent members of the 15-seat council during 2029 and 2030. A vote for the spot isn’t due to take place until 2028, but lobbying efforts will intensify during the general assembly.

Responses to the AI consultation paper are open until October 9.