Data centres not tied to copyright overhaul

By the Editorial Team · Thursday, June 25, 2026

Treasurer Jim Chalmers rejected calls from AI developers to reform Australia’s copyright laws, stating that significant investment in data centre infrastructure is already occurring under the current framework. Despite this, ongoing government discussions and industry lobbying highlight the challenge of balancing innovation incentives with the protection of creative rights as Australia rapidly expands its AI sector.

Treasurer Jim Chalmers has dismissed calls from artificial intelligence developers for a major overhaul of Australia’s copyright laws to spur investment in data centre infrastructure. Speaking in Canberra on Wednesday, Chalmers said the significant growth in spending on data centres and AI-related projects was proceeding without changes to the current copyright framework.

AI firms have argued that existing copyright protections hinder their ability to access Australian creative works and data for training machine learning models, thereby limiting the country’s attractiveness as an investment destination. They contend that reform, including exemptions for text and data mining, is necessary to unlock tens of billions of dollars in infrastructure spending.

However, Chalmers rejected this perspective, noting that the government’s stance on copyright has remained consistent and has not presented a barrier to what he described as “extraordinary and very welcome investment” in the sector. Recent capital expenditure data shows the strongest quarterly growth in machinery and equipment investment in over 30 years, driven by a 196 percent surge in information and technology-related spending.

Australia’s expansion of AI infrastructure ranks it sixth globally for data centres that are operational, under construction, or planned, trailing the United States, China, Malaysia, India, and Japan. Estimates from Westpac place the nation’s data centre investment pipeline at more than A$155 billion when including related energy generation and transmission projects. This rapid growth has prompted concerns about potential stress on the electricity grid and water resources.

Tech companies continue to lobby for copyright reform, and the Albanese government has indicated it is considering possible adjustments. Nonetheless, it has ruled out instituting a broad text and data mining exemption that would facilitate AI training. This stance was reiterated during Senate question time on Tuesday when Independent Senator David Pocock questioned the government about reports of a confidential proposal to introduce a copyright “carveout” for AI companies.

Pocock suggested the proposal would link billions in infrastructure investment to a new fund supporting the creative industries. He also mentioned an alternative plan to extend existing licensing arrangements to give AI developers access to Australian content. Both proposals were swiftly dismissed by Labor as “reckless speculation,” with no indication of imminent legal changes.

The debate underscores ongoing tensions between promoting technological innovation and protecting creative rights as Australia seeks to balance investment growth with cultural and economic considerations.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.