Australia's AI strategy prioritizes growth over strict rules, funding a safety institute and linking data centers to renewables to manage energy demands.

Australia’s new AI strategy avoids strict regulations, focusing instead on economic growth and establishing a $30 million safety institute to assess risks case by case. The plan comes as data center investment surges, with Australia ranking second globally in 2024, raising concerns over energy use, which could rise to 12% of the national grid by 2050. To address strain on the grid and climate goals, the government is pushing tech firms to link data center projects with renewable energy or battery storage. Similar issues have delayed or blocked major data center developments in the U.S., Ireland, South Africa, and Mexico due to environmental and energy pressures.