The Australian Human Rights Commission (AHRC) has raised concerns about the rapid expansion of data centres driven by investment in artificial intelligence, highlighting potential risks to human rights and questioning the employment benefits for marginalised groups. The commission’s submission to a Senate inquiry warns that current government policies do not adequately address the social and environmental impacts of data centre development.

Data centres are growing rapidly across Australia, spurred by increased demand for digital infrastructure. However, the AHRC cautioned that locating these large-scale facilities in urban areas could exacerbate housing affordability issues by intensifying competition for land. According to the commission, prioritising industrial use of land for data centres may reduce the availability of residential development, potentially driving up local housing prices in cities already facing shortages.

The commission also pointed to environmental and public health concerns related to data centres. These facilities often require significant electricity and water resources, with water-intensive cooling systems posing particular challenges in drought-prone regions. The AHRC noted that rising electricity costs linked to data centre operations can indirectly affect rights to adequate living standards, including access to food, housing, and health services. Additionally, noise pollution and possible temperature fluctuations downwind of these centres were identified as issues that could impact surrounding communities.

While the AHRC acknowledged that data centre expansion might provide employment opportunities, it emphasised that such benefits are not guaranteed to reach diverse or marginalised populations. Groups such as women, older workers, and people with disabilities—who are often underrepresented in construction, ICT, and engineering sectors—may not equally share in job growth. The commission pointed to the need for jobs to be secure, fairly remunerated, and accessible, including for regional workers, to truly uphold the right to work.

The AHRC called on the federal government, led by Prime Minister Anthony Albanese, to implement “robust and trusted regulatory protocols” to safeguard fundamental human rights in the context of the AI-fuelled data centre boom. It further urged the government to strengthen modern slavery safeguards within the sector.

The concerns reflect broader political resistance to data centre rollouts in Australia, voiced by both left- and right-leaning groups. The AHRC’s submission suggests that the Albanese administration’s current AI strategy does not sufficiently consider the intersecting human rights and environmental issues that accompany rapid digital infrastructure development.