Australia may face a rush of datacentre construction as AI firms look to dodge upcoming rules, experts say

Australian AI firms are rushing to secure datacentre approvals before the government introduces new, stricter regulations. The proposed rules aim to manage power consumption, water usage, and site location, but will not apply to projects approved before the legislation passes.
Why it matters
The rapid growth of AI infrastructure is straining energy grids, forcing governments to balance technological development with environmental and utility stability.
Anthony Albanese at a national cabinet meeting in Perth. Anthony Albanese at a national cabinet meeting in Perth. Australian politics Australia may face a rush of datacentre construction as AI firms look to dodge upcoming rules, experts say Regulations will require new sites to avoid pushing up power prices by building renewable energy plants and minimising water use
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Prefer the Guardian on Google Planned datacentres around Australia may avoid strict new rules being proposed by Anthony Albanese if they can secure approvals in the coming months, amid growing calls growing for a moratorium.
The prime minister is aiming to come to an agreement with national cabinet on federal regulations for datacentres at a meeting on Wednesday.
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