Australian government unveils AI framework with explicit focus on data-center regulation, power allocation, and copyright safeguards.

Australian Prime Minister Anthony Albanese has unveiled a comprehensive framework for the country's approach to artificial intelligence, emphasizing its critical role in boosting productivity, economic resilience, and sovereign capability.

Speaking at the University of Sydney, Albanese outlined a series of proposed standards for AI, including specific requirements for data centres to reduce water consumption and either provide or underwrite their own power supply. The Prime Minister will present these standards to Cabinet next month for approval from state premiers and territory chief ministers, with legislation to follow in parliament early next year. Currently, South Australia remains the only state with a dedicated data centre framework in place.

Albanese stressed the urgency of establishing AI's "social license" before large-scale investments become entrenched, arguing that the government cannot afford to wait until companies have already constructed data centres before negotiating operational conditions. This early intervention, he suggested, is essential to shaping Australia's AI development.

A central pillar of the framework addresses copyright protections. Albanese declared that AI firms will not be permitted to use Australian books, music, art, or news content to build or train models unless creators retain control over their work. He assured musicians, writers, and artists that they would maintain authority over their creations, including the ability to set prices in any copyright arrangements with AI companies. The government has made clear it will cooperate on sharing factual information but will not permit broader use of locally produced material.

Albanese announced the establishment of a new Office of AI within the Department of the Prime Minister and Cabinet to coordinate existing efforts across education, employment, climate and energy, copyright, and defence portfolios.

The Prime Minister framed artificial intelligence as an economic development tool rather than primarily a threat to employment, stating: "We should not treat AI as a threat to good jobs, we must use it as an instrument to help create them." While the speech outlined broad policy direction, specific announcements on AI legislation, funding, tax incentives, detailed copyright rules, consumer protections, and workplace rights are expected following further consultations.