Australia Plans to Govern Use of Water, Power for AI

By James Glynn

SYDNEY--Australia plans to require data centers to underwrite their electricity and water supplies, as the government seeks to govern the growing artificial-intelligence industry.

Prime Minister Anthony Albanese said that the government will soon introduce a set of standards for AI providers to "ensure AI works in Australia's interests."

The new standards will set out rules for large data centers-- including a legal obligation to source their own new power supply, pay their full share of connection costs so consumers' energy bills aren't affected, reduce power when needed to strengthen the power grid, and be as water efficient as possible, Albanese said Wednesday.

Governments across Australia will also work together to ensure large data centers "are built in the most appropriate locations, and with input from local communities," he added.

Albanese also said the Office of AI will be established within the Department of Prime Minister and Cabinet to accelerate implementation of the industry standards on a national level.

The national cabinet will discuss the new standards in August, with legislation expected early next year.

"The implementation of these standards will deliver a simple, consistent regulatory framework for large data centers and AI training and be the first to be legislated by a government worldwide," Albanese said.

The government is also setting out to ensure protection for the intellectual capital of artists and media, with laws preventing companies using creative works to train AI without the artist's control, he added.

"This framework is about protecting our national interests and ensuring certainty for growth, jobs and investment," Albanese said.

"If we set our national standards high, then we can make AI stand for Australia's interests," he added.

Write to James Glynn at james.glynn@wsj.com

(END) Dow Jones Newswires

July 15, 2026 01:51 ET (05:51 GMT)