PM pushes major AI and data centre plan to win global investment

Maintaining Australia’s social licence will be “crucial” as the federal government seeks to draw investment in AI and power-hungry data centres, Anthony Albanese has warned ahead of a meeting of state and territory leaders.

Mr Albanese will address the Business Council of Australia’s annual dinner on Tuesday before convening a meeting of national cabinet on Wednesday.

The Labor leader is expected to outline for state and territory leaders the government’s new national standard for AI at national cabinet, including minimum obligations for data centres around water and energy usage as well as training regarding copyright, security, and safety.

He will also seek an agreement on the “generational opportunity” of AI.

Addressing the BCA, Mr Albanese is expected to state that Australia can “do more to unlock frontier AI development in Australia”.

“AI adoption will continue to grow as business builds and tests newer capabilities and frontier AI capabilities accelerate,” Mr Albanese will say.

“We must shape this change to harness the positive opportunities while minimising the downsides.”

Mr Albanese will say Australia is in a strong position to attract investment in data centres.

“That means ensuring energy bills do not rise, water security is maintained and locations are appropriate.

“Getting this right can ensure Australia is the infrastructure partner for our region, aided by our status as a Five Eyes partner.

“It will advance our national sovereignty, and it is essential for our national security, business productivity, science, innovation and resilience.”

Mr Albanese will state that the objective of all Australian governments should be “to turn our attractive investment settings into a comparative advantage that supports our national interests”, and progress in AI could help Australia see off the “populist challenge”.

“Hosting large-scale AI training data centres, and unlocking frontier AI model training, will help Australia capture a larger share of the economic value, technical capability and strategic influence of AI,” he will say.

“Every country is dealing with these enormous issues, just as I am sure every business in this room is considering the implications of this revolution.