An artificial intelligence (AI) office and new laws will be drafted as the federal government moves to regulate large data centres in Australia.
And the Climate Council says renewable energy generation needs to be 'baked' into the centres' operating conditions to protect communities (see below)
Prime Minister Anthony Albanese said in Sydney today (July 15) that an AI Office will be established within the Department of Prime Minister and Federal Cabinet.
The office will oversee the implementation of Australian Standards for AI that will regulate large data centres in the country and is scheduled to become law early next year.
These standards include centre operators underwriting their own power supply, paying for connection costs, reducing power consumption at need and minimal water use.
“Artificial intelligence is already part of our daily lives; not as a novelty or a search tool,” Albanese said in a speech to an audience at the University of Sydney.
“No government can turn back the clock or press pause on all of this nor would we want to.”
ARTIFICIAL INTELLIGENCE INVESTMENT NEEDED
Albanese says building frontier advanced investment in the country is required to build sovereignty and economic resilience.
“We have more than time on our side; we have the advantage of geography,” he says.
“We have a continent to ourselves, one of our big advantages. We have more than enough room for new data centres without them competing with new housing.
“The expansion of AI … needs our land and energy and computing power to operate,” Albanese says.
“That means we can set the terms, we can determine AI’s social licence, but we have to do it now.”
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AI CONTENT CREATION
Albanese claims local writers, musicians, artists and journalists will keep ownership and control of their work under the new laws.
“No company should use Australian books, music, art or news to build or train artificial intelligence without the artist’s control,” he says.
“That includes the artist’s control of the price and value of their work. Anything less, is theft. No country has got this right yet.”
He says data centre operators will have to “put at least as much energy into our grid as they take out of it” by committing to renewable energy generation.
“We will create a legal obligation for the next generation of large-scale data centres to underwrite new power supply to pay their full share of grid connection so no costs are passed on to homes or businesses.”
National Cabinet will study the proposal at its meeting next month.
CLIMATE SIDE REACTS
The Climate Council says the new office must be able to enforce the renewable energy directive given that the Queensland Government is threatening to allow data centres to expand without any such requirements.
CEO Amanda McKenzie says: “The AI-driven surge in data centres will have a profound effect on our energy system; unchecked, this growth could mean soaring prices and rampant climate pollution.
“(The) GenCost report shows us yet again that solar and wind are the backbone of the lowest-cost energy mix for Australia but right now data centres could delay this shift.”
She agrees with Albanese that Australia is a very attractive location for data centres but says ‘strong guardrails’ are needed.
“With power prices and climate pollution set to surge in the next decade without intervention, this (renewable energy investment) must occur from the get-go,” she says.
“Accelerating the roll-out of proven renewable energy is the only way to keep prices as low as possible, ensure grid stability, and slash climate pollution.”
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