Australian PM proposes power rules for AI data centres

It will also set rules on where large data centres are built.

Australia has proposed requiring AI data centres to generate as much power as they use back into the grid.

In a speech at the University of Sydney, Prime Minister Anthony Albanese said they plan to create a 'legal obligation' for large-scale data centres to underwrite new power supply.

This will ensure that data centres pay their full share of grid connection so that no costs will be passed on to homes or businesses. Albanese said the plan is to 'put at least as much energy into our grid as they take out of it'. This will also ensure that data centres do not increase power prices in Australia.

"Australia is the sunniest continent on earth, but we're also the driest. Which is why our rules will require data centres to minimise their water use, maximise their energy efficiency, and pay for any additional water infrastructure required," Albanese said.

The measures will be part of a broader set of Australian Standards for AI that will bring large AI data centres into a single national regulatory framework.