Australia announced new regulatory measures aimed at curbing the environmental impact of large data centers supporting artificial intelligence (AI) technologies and protecting the rights of creative professionals whose work may be used in AI training. Prime Minister Anthony Albanese outlined the framework Wednesday in Sydney as the government seeks to position the country as a responsible hub for AI development while addressing rising concerns around energy consumption and intellectual property.

As part of the plan, large data centers will be required to generate as much energy as they consume, with additional mandates to maximize water efficiency. The government said it will codify these standards in legislation expected early next year, establishing an “Office of A.I.” reporting directly to the prime minister to oversee implementation. The initiative represents the first national framework globally to integrate such provisions, according to Albanese.

The government emphasized the importance of protecting creators’ rights, stating that Australian authors, musicians, artists, and journalists should retain control over the pricing and use of their work when incorporated into AI training datasets. Albanese described unauthorized use as “theft” and criticized the lack of international consensus on this issue.

While the details of enforcement and state-level support remain unclear, the government highlighted the significance of balancing economic opportunities from the expanding AI sector against environmental and social concerns. Australia has recently attracted considerable attention from major AI companies due in part to its abundant renewable energy resources and ample land for data center development.

Industry reactions were mixed. Bran Black, chief executive of the Business Council of Australia, welcomed the proposed standards but cautioned against overly prescriptive regulations that might hinder competitiveness or deter investment. Black urged alignment with international regulatory environments to maintain Australia’s appeal to global AI firms.

The announcement comes amid growing resistance to data center expansion worldwide. In the United States, numerous states have proposed moratoriums on new data centers; New York recently enacted a one-year halt on the construction of the largest facilities. The European Union is moving forward with its “AI Act,” which includes transparency, copyright, and public safety provisions, with enforcement beginning this August.

Major technology companies operating in Australia responded positively but with measured tones. Microsoft expressed support for the government’s vision, highlighting the need for AI to align with national values. OpenAI indicated ongoing constructive engagement with the government and creative communities. Anthropic underscored its respect for the process and commitment to meeting regulatory expectations.

Academic experts welcomed the move as addressing key public concerns but noted that much of the policy’s substance remains to be defined. Toby Walsh, an AI professor at the University of New South Wales, acknowledged Albanese’s awareness of issues surrounding AI but stressed that the effectiveness of the regulations will depend heavily on implementation details. He further noted that Australia’s long-term benefits will hinge not only on attracting foreign investment but also on fostering domestic AI companies and talent.

Albanese compared the AI regulatory efforts to the government’s pioneering social media law that restricts use of such platforms by children under 16. He stressed the importance of taking proactive regulatory steps in the face of rapid technological change, warning that delays in addressing emerging risks can result in profound societal consequences.

“The opportunity, and the choice, we have now with artificial intelligence,” Albanese said, “is to shape its development to serve Australia’s interests and values.”