Australian Prime Minister Anthony Albanese established an Office of AI within the Department of the Prime Minister and Cabinet and unveiled a national framework for regulating artificial intelligence, with the intention of introducing implementation legislation in early 2027, the Australian Financial Review reported on July 15. Under the framework, large data centers would be required to underwrite new power supply, pay grid connection costs, reduce consumption during grid strain and minimize water use, while copyright holders would retain control over whether their works are used to train AI systems.

Rapid data center expansion in Australia is driving AI policy as an electricity, land and water use issue, with the Australian Energy Market Operator forecasting data center consumption across Australia's main grid to triple to around 12 terawatt hours, or 6% of total electricity supplied by the grid, by 2030. Canberra is seeking to establish national rules before investment accelerates further, allowing Australia to attract AI infrastructure while minimizing costs to households and businesses.