Albanese seeks to quell datacentre disquiet as climate expert warns ‘we’ve got one shot to get the rules right’

Prime Minister Albanese will seek to use Wednesday’s high-stakes talks with premiers to quell growing unhappiness about national controls on datacentre developments, promising new approval laws will complement state rules.

With potential to be one of the major reforms of Labor’s second term, the new law will set tough copyright rules for AI businesses and impose standards for security, safety and skills development.

The industry’s rapid growth, driven by increasing reliance on AI and cloud computing, remained one of the most significant causes of growth in electricity demand, according to Aemo’s annual Electricity Statement of Opportunities. The Climate Council chief executive said datacentres were set “to devour an enormous share of Australia’s electricity in the coming years”.

Albanese will use the national cabinet to strike agreement on a plan to legislate nationally consistent minimum obligations for datacentres, requiring them not to push up energy prices, meet their own infrastructure costs and minimise water use. The rules will also require developers to minimise the effect of new datacentres on local communities, ensuring they are appropriately sized and appropriately located, away from homes, schools and potential housing or agricultural sites.