New rules for data centers will set standards on water use and require them to produce or buy their own power.
BY Mahnoor | 15-07-2026
Australian Prime Minister Anthony Albanese on Wednesday introduced a plan for how the country will handle artificial intelligence (AI). He said AI will be very important for Australia’s productivity, economic strength, and ability to stand on its own.
During a speech at the University of Sydney, Albanese set up new rules for AI. These rules will apply to data centers and require them to use less water and generate their own electricity, as reported by the Australian Broadcasting Corporation.
He also said that AI companies cannot use Australian books, music, art, or news to train AI without the artist’s permission.
The prime minister will ask state and territory leaders to agree on the new rules at a meeting next month.
He warned that Australia has only a short time to earn public trust in AI. He admitted there are problems and dangers in the current unorganized way of handling this technology.
He also said Australia can set the rules for AI before big investments are made, and the government cannot wait until companies have already built data centers to start setting conditions.
Albanese told Australian musicians, writers, and artists that they would keep control of their work and set the price in any copyright deals with AI companies.
But his speech did not have clear announcements about AI laws, money, tax breaks, copyright, consumer rules, or workplace rights. Specific steps are expected after talks.
But he said he would ask states and territories to agree on ‘clear, steady, and required’ data centers at next month’s Cabinet meeting about the new rules.
Then, laws for these rules would be presented to parliament early next year.
Right now, South Australia is the only state that has its own rules for data centres.
The prime minister told tech companies that the government will work with them to share true information, but ‘not everything made in Australia is free to take.’
“No company should use Australian books, music, art, or news to build or train AI without the artist’s permission. This includes the artist’s right to decide the price and value of their work,” he said.
He also said that a new “Office of AI” is being set up inside the Department of the Prime Minister and Cabinet. This office will help coordinate work already happening in areas like education, jobs, climate, energy, copyright, and defense.
“We should not see AI as a danger to good jobs, but use it as a tool to help make them,” he said.
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