Australia Announces Mandatory Data Centre Standards and Rejects Copyright Carve-Out for AI Training

Summary

Prime Minister Anthony Albanese has announced a comprehensive regulatory framework for artificial intelligence in Australia, with plans to introduce mandatory national standards for AI data centres and strict copyright protections for Australian creative works. The government will require large-scale AI facilities to minimize water usage, fund their own electricity generation, contribute at least as much renewable and firming power back to the grid as they consume, and cover full grid connection costs to prevent households from subsidizing infrastructure. Albanese positioned AI regulation as both an economic opportunity and national security imperative, emphasizing that Australia should develop sovereign AI capability rather than serve as a 'data warehouse for AI products made overseas.'

On copyright, Albanese delivered a firm rejection of any carve-outs that would allow unrestricted use of Australian creative works for AI training. He pledged that AI companies will not be able to use Australian books, music, art, or news to train models 'without the artist's control,' stating 'Anything less is theft.' The government will seek state and territory agreement for these standards at a national cabinet meeting next month, with legislation expected to be introduced to parliament in early 2027. The framework aims to establish AI's 'social licence' before major investments become entrenched.

• Legislation to implement standards expected in parliament early 2027 after state and territory consultation