Australia rolls out AI road map to boost governance
By ALEXIS HOOI in Sydney | China Daily | Updated: 2026-07-20 09:58
Australia has laid out a national road map for artificial intelligence, outlining the country's approach to developing the emerging sector and strengthening AI governance.
The new standards for AI include rules for large data centers that require significant energy, water and other resources to power and cool the computing processes, according to a statement from Australia's Prime Minister Anthony Albanese on July 15.
The infrastructure at the center of the AI push will need to use the resources responsibly and be as efficient as possible, among other legal obligations.
"Australia is the sunniest continent on Earth but we're also the driest," Albanese said in a speech that rolled out the AI plan.
"Which is why our rules will require data centers to minimize their water use, maximize their energy efficiency, and pay for any additional water infrastructure required," he said.
Albanese said that an Office of AI is being established to accelerate the implementation of the standards on a national level, in line with the industry rollout.
Sherif Mostafa, senior lecturer in the School of Engineering and Built Environment at Griffith University in Queensland, told China Daily that data centers are the buildings and computing power behind AI.
"Hospitals, universities, researchers, businesses, and government services all depend on them," said Mostafa, whose research focuses on AI-enabled infrastructure, construction management, and net-zero built environment.
A net-zero carbon building is a highly efficient building that achieves a zero balance of carbon emissions during operations.
"Building more capacity in Australia can also improve resilience and keep more critical computing capability here."
The data centers are not simply large warehouses, he said, as they can place pressure on electricity and water networks, compete for suitable land, generate noise and diesel emissions, and create a much greater impact when several facilities cluster in one area.
Australia's national AI plan shows that data centers used about 4 terawatt-hours of electricity in the national electricity market in 2024, about 2 percent of electricity from the main grid, and the demand is expected to triple by 2030, Mostafa said.
The government's proposed rules "are a useful start", he said, with large data centers expected to secure new power generation, pay their full share of grid-connection costs, shift nonurgent computing when the grid is under pressure, use water efficiently and involve local communities early in decisions about where the facilities are built.
Cooperation potential
Australia's advantages in the sector also go beyond the space needed for the infrastructure and include strong renewable resources, stable institutions, capable universities and engineers, access to advanced technology, and undersea internet cables connecting it to global markets, Mostafa said.
"Australia's real choice is whether to be a landlord or a partner in the AI economy. A landlord simply provides land and electricity; a partner uses the investment to build computing capacity, create skilled jobs, develop research partnerships, support Australian businesses, and foster homegrown technology," he said.
Referring to the potential for AI cooperation between Australia and China, Mostafa said the clearest practical opportunities are in the infrastructure around AI.
"Areas for cooperation could include cooling systems that use less energy and water, renewable power, batteries and storage, factory-built modular systems, lower-carbon construction materials, waste-heat recovery and common standards for measuring energy and water performance," he said.
Mostafa said a useful first step could be a university-industry project testing air cooling and liquid cooling under Australian heat and humidity.
"It could compare electricity use, water demand, carbon emissions and the ability to reduce demand during peak periods, with the results published for independent assessment."
Lizzie O'Shea, founder and chair of advocacy group Digital Rights Watch, said in a statement to the media that there is a need for a "sustainable, discerning takeup of frontier technologies", with "a real opportunity for the government to consult openly with communities and work collaboratively to ensure we have the right infrastructure for the 21st century".
"AI is untested tech, and the productivity benefits are yet unclear. We are hopeful about the potential of digital technology to improve the lives of all Australians, but only if we engage with the claims by the industry critically," she said.
O'Shea said there is also an opportunity cost to data centers, noting that prioritizing their construction may reduce the capacity for renewable energy projects in the climate crisis and new home construction.
She added that for Australia, the AI rollout could "likely increase the current cost of electricity and water in a cost-of-living crisis".
alexishooi@chinadaily.com.cn





















