Australia sets non-binding AI data center rules to ensure renewable energy, water efficiency, and grid stability, prioritizing compliant projects for national support.

Australia has introduced non-binding guidelines for AI data center projects, requiring developers to build their own renewable energy infrastructure, use water efficiently, pay full grid connection costs, and support grid stability. Projects aligned with these principles will be prioritized for government support under the National AI Plan, which aims to boost productivity, local innovation, and national security. While compliance isn’t mandatory, the framework seeks to balance economic growth with environmental sustainability and job creation. Critics warn the focus on infrastructure overlooks broader AI governance, and concerns persist over rising energy demand and job losses due to automation. The government replaced a former AI advisory body with a case-by-case safety institute, stating existing laws cover AI safety.