Politics with Michelle Grattan: Ed Husic urges brakes on data centres ‘swamping’ Australia

Australia is “going too fast” in building data centres and “been swamped by US tech” expanding here to avoid growing American community opposition, former industry minister Ed Husic has warned.

The outspoken backbencher – who was responsible for the federal government’s artificial intelligence (AI) policy until May last year – told The Conversation’s Politics podcast it still wasn’t clear whether the government’s planned national data centre standards on energy and water would apply to centres being built now.

Husic also shared his views on needing to substantially lift Australians’ lagging wages, the need for a tougher stance against Israel’s actions in Gaza, and his concerns Labor had learnt “the wrong lessons” from the turmoil of the Rudd-Gillard years. ‘Data centres vs homes’ in Australia The Albanese government has become increasingly engaged with the emerging AI sector, trying to balance how to ensure adequate guardrails around AI while not locking out crucial investment.

Husic said “while I’m much more relieved about us moving from voluntary to mandatory guard rails or standards on data centres, it’s taken us a while to get there” – saying the Albanese government had “waited too long to get to this point”.

There are a lot of data centres being built now that the question is whether or not our proposed standards will capture them.

And I think a lot communities want to see that all data centres that are being built since we’ve announced the standards will be captured by them, so that there’s a lot more confidence that we can get this work done.

Husic said that the race to build more data centres was happening “at a time where we don’t have enough construction workers to build the homes we need”, and without enough clarity on the vital power and water supplies they require.

We are going too fast.

And I’m concerned some states have been in a race to win the medal of ‘data centre capital of Australia’.

Some states, for example South Australia, have argued this.

There was a time it’d be a life-threatening choice to stand between a South Australian and a glass of water in a state that is very conscious of water supply.

For them to argue that they want more data centres, in a state where water supply is an issue for [data centre] facilities that use so much water – there should be a pause for thought.

Husic also said it was environmental and economic “lunacy” for states like Queensland to propose using coal and gas to power huge data centres.

Investing in more homegrown AI Husic wants to see more local investment in Australian AI firms to guarantee we’re not entirely reliant on global companies for the technology.