Australia’s AI regulation framework
Prime Minister Anthony Albanese announced on 15 July 2026 that Australia will establish an AI regulatory framework, requiring large AI data centres to bear energy and infrastructure costs, and strengthening management of AI use and copyright.
The government plans to create legal standards for artificial intelligence and data centres within the next year, as part of a “global first” AI regulatory framework.
What the new rules mean for data centres
Albanese, speaking at the University of Sydney on Wednesday, said Australia is at a critical stage in shaping the future of AI and cannot just passively accept technological changes but should set rules to ensure AI development aligns with Australia’s interests.
Under the government’s plan, large AI data centres will face stricter requirements, including reducing water usage, bearing the cost of new electricity supply, and paying fees related to connecting to the grid, to avoid shifting energy and infrastructure costs onto households and businesses.
Copyright protections for creators
On copyright, Albanese said AI companies cannot use Australians’ books, music, artworks, or news content to train AI models without creators’ control.
Opposition response
Opposition Leader Angus Taylor also criticised that establishing a new AI office could increase bureaucratic processes, and said the government should prioritise ensuring Australia obtains the most advanced AI technology for cybersecurity.