Australia urged to tighten data‑centre rules as AI boom drives rapid expansion

Industry experts warned that a surge in data‑centre construction in Australia could attract “cowboy” developers who may exploit resources and clog utility pipelines. At the Committee for Economic Development of Australia’s State of the Nation conference, speakers highlighted that more than 160 data centres are already operating and another 90 are planned, driven by demand for AI tools and multibillion‑dollar investments from firms such as Microsoft and Amazon.

They called for stringent, clear regulations on data‑centre approvals, including targets for water and energy use, local content and innovation, and stricter vetting of project applicants. AGL chief executive Damien Nicks noted that, if managed properly, data centres could support renewable‑energy projects and create regional jobs, especially when built on decommissioned power‑station sites. The federal government has issued five expectations for developers and is accepting submissions to its data‑centre inquiry until September.