Australia will establish an Office of AI to coordinate artificial intelligence standards and oversee major data centres as the government prepares new laws on their energy and water use, Prime Minister Anthony Albanese said on Wednesday (15 July).
The office will sit within the Department of the Prime Minister and Cabinet, giving ministers a whole-of-government mechanism after what Albanese described as a sector-by-sector response to the technology.
Speaking in Sydney, Albanese said Australia had moved beyond the question of whether AI would transform the economy and now had to decide what the technology should look like in the country.
He said the approach would give investors clearer approval pathways and a more streamlined compliance process, while planned legislation early next year would set rules on where major data centres are built and how much power and water they use.
The announcement comes as Australia seeks to position itself as a leader in AI and a hub for data centres, even as the rapid growth of the technology raises concerns over jobs, energy costs, safety, security, intellectual property and environmental pressures.
Climate Council chief executive Amanda McKenzie warned that an unchecked AI-driven surge in data centres could push up prices and increase climate pollution.
Australia currently has no dedicated AI laws, relying instead on privacy and consumer protections alongside a voluntary AI ethics framework.
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