Australia will introduce laws regulating how artificial intelligence data centres consume electricity and water, while strengthening copyright protections for creative works, Prime Minister Anthony Albanese said on Wednesday.
In a landmark speech outlining his government's AI strategy, Albanese sought to ease public concerns about the technology, saying it could be developed in a way that serves Australia's national interest.
The centre-left leader said he would meet state and territory leaders next month to discuss the proposed legislation, which is expected to be introduced next year to build public trust in AI and strengthen national security.
Albanese said Australia had led the world in introducing restrictions on children's use of social media, but argued that shaping the development of AI was an even greater challenge requiring immediate action.
"If we hang back and stand still this will just run right over the top of us," he said during a speech at the University of Sydney.
"Our great country can be much more than a data warehouse for AI products made overseas."
Government targets data centres
The proposed rules would impose clear legal obligations on large data centres, requiring them to return more electricity to the grid than they consume, minimise water use and avoid competing with housing developments for land.
The government also plans to establish a dedicated AI office within the prime minister's department to oversee national policy.
"Getting this right will enhance our appeal to international investors by delivering greater clarity and speed for approvals, and a streamlined process for verifying compliance," Albanese said.
His announcement comes after reports that US startup Anthropic had lobbied Australian officials to amend copyright laws to allow the use of creative works in training AI models.
Musicians, writers and publishers have urged the government to resist such changes and strengthen protections for their work.
Australian creative content was not "up for grabs", Albanese said.
"No company should use Australian books, music, art or news to build or train AI without the artist's control... anything less is theft," he said.
AI seen as economic opportunity
Government figures show investment in data centres was the largest contributor to Australia's economic growth in the three months to March.
Albanese said the government had yet to see a significant impact from AI on the labour market.
"We should not treat AI as a threat to good jobs. We should use it as an instrument to create them," he said.
