Albanese to seek state cooperation on data centres but faces fight with Queensland
The federal government will push for new national laws with rules for where data centres can go, how they must be powered and where their water comes from.
Prime Minister Anthony Albanese plans to propose national legislation for conditions and guardrails around data centres during a meeting with national cabinet on Wednesday. However, he faces opposition from Queensland. The proposed legislation covers energy and water sources, as well as locations for data centres. It also sets requirements for AI model training, focusing on copyright, security, safety, and skills development.
The federal government insists that new data centres be tied to new renewable energy projects. Queensland, on the other hand, is resisting this plan and wants coal and gas to be excluded. Energy Minister Chris Bowen warned that Queensland is attempting to "run a race to the bottom," which would result in rising energy bills and reduced reliability.
Opposition leader Angus Taylor declared the Coalition to be "absolutely neutral" about fuel sources, stating that the decision should be made by those who are paying for and building the data centres. Albanese emphasized the importance of ensuring energy bills do not rise, water security is maintained, and locations are appropriate.
The prime minister also promised no change in the generous GST deal the state of Western Australia receives, which may further annoy premiers from other eastern states, particularly New South Wales Premier Chris Minns. The Productivity Commission recently called for the GST deal to be scrapped, but Albanese has maintained his position.
Albanese stated that Australia is well-positioned to attract data centre investment, but maintaining social license will be crucial. Meeting energy and water requirements, as well as choosing suitable locations, will help ensure Australia remains a trusted infrastructure partner in the region. This could enhance national sovereignty, business productivity, science, innovation, and resilience.
Written by urgent.news from The Conversation AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
