By Josh Butler
Publication Date: 2025-12-02 06:42:00
The federal government could force AI companies to expand Australia’s power grid and build new wind and solar projects to help power its energy-intensive data centers amid fears the booming industry could use huge amounts of electricity and water.
Business groups, unions and the tech sector have welcomed the federal government’s national AI plan, which sets out Labor’s plans for a light-touch approach to regulating the sector to reap economic and productivity benefits from the technology.
But technology experts warn that Australia is slow to put guardrails and policies in place for AI, leading to major damage and missed investments. Industry Minister Tim Ayres warned AI technology could take up 12% or more of Australia’s electricity and promised a “co-demand” to allow big companies to do their part.
“I want digital infrastructure with artificial intelligence to secure our energy future and use these investments to finance improved…
