House debates

Wednesday, 24 June 2026

Matters of Public Importance

Data Centres

3:37 pm

Photo of Claire ClutterhamClaire Clutterham (Sturt, Australian Labor Party) | Hansard source

Artificial intelligence is no longer a future concept. It is here, it is growing rapidly and it is reshaping our economy in real time. This discussion is not just about AI as a technology and what it can do. It is about the infrastructure behind it—the data centres and AI facilities—and ensuring that they are built and maintained in Australia's national interest and in the interests of the Australian people. AI must work for Australians, our economy, our communities and our future.

There is no question that AI brings with it enormous opportunity. When harnessed for constructive purposes, it drives productivity, supports innovation, strengthens industries and enables world-leading research. Data centres are a part of this. They operate to power the digital services Australians rely on every day. They create jobs and they support a modern economy. But with that growth comes responsibility. That is why the Albanese Labor government has a clear national expectation for data centres and AI infrastructure developers to ensure this investment delivers shared benefits, not just shared costs.

At its core, this is about making sure AI infrastructure in Australia serves our national interest. These facilities are not just commercial assets, they are strategic. They go to data sovereignty, national security and community trust. We expect developers to engage openly with local communities, businesses and government to minimise impacts and operate in ways that deliver real benefits for Australians. Equally important is how this infrastructure interacts with our energy system. AI data centres are highly energy intensive, and it would not be acceptable for that demand to place upward pressure on prices for Australian households and small businesses. Our approach is clear: new developments must support, not undermine, Australia's clean energy transition. That means securing additional renewable energy, contributing fairly to transmission and grid infrastructure, improving efficiency and supporting grid stability.

Those who benefit from this growth must also help build the system that sustains it. They must understand that although government wants to encourage innovation and AI development, there does need to be regulation, with the role of government being to strike that careful and precise balance between encouraging growth and not paralysing business, at the same time as protecting the Australian people and our natural resources. This applies strongly to water, a precious resource that must be carefully managed. We expect data centre operators to adopt efficient cooling technologies, minimise reliance on potable water and engage early with communities, utilities and stakeholders. Transparency and long-term planning are essential to ensuring that these developments are sustainable and resilient.

This is also fundamentally about people—about Australian workers and the economic opportunities that come with this transition. As a Labor government, we will always stand with workers. Labor is the party of workers, and we are determined that the growth of AI infrastructure must translate into secure, well-paid jobs alongside real investment in skills, apprenticeships and training pathways. Australians should not just host this infrastructure; they should build it, operate it and benefit from it. A Future Made in Australia means we are a centre of capability where research and innovation is supported, enabling Australian startups and small businesses to access the computing power they need.

In my home state of South Australia, the state Labor government is taking a proactive approach, making it clear the state is open to AI investment—but not at any cost. With plans to attract data centres, particularly in regional areas, the focus is on creating jobs and economic opportunity while putting in place legislation to manage energy and water use responsibly. We are reflecting the same principle at the federal level. Growth must be carefully managed with clear guardrails so that communities benefit alongside industry.

All of this reflects the broader principle that has guided our approach to AI from the beginning. When it is done properly, there are real opportunities for Australians. The role of government is to regulate without paralysing innovation, to enable growth while ensuring that it is safe, sustainable and fair. We welcome investment, we support innovation, and we want Australia to lead.

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