The Australian Government has opened public consultation on mandatory national standards for AI infrastructure, signalling a move to place tighter rules around the rapid expansion of data centres and AI training facilities across the country.
The proposed framework will cover energy and water consumption, land use, infrastructure requirements and the conditions under which AI models can be trained in Australia. The government intends to legislate the standards and develop them in coordination with state and territory governments.
The consultation will remain open until 9 October 2026 and is aimed at shaping a nationally consistent approach as demand for large-scale computing infrastructure accelerates.
According to the government, the new standards are intended to support continued investment and innovation in AI while addressing concerns about the pressure large data centres can place on electricity grids, water supplies, land availability and surrounding communities.
Without a coordinated national framework, the government said a surge in new data centre construction could create growing competition for critical resources and place additional strain on infrastructure already facing increased demand.
Earlier this year, the government created the Office of AI to oversee the development of AI standards and help shape policies around the operation of data centres, including measures aimed at requiring facilities to become net producers of energy and limiting their water consumption.
The latest consultation focuses on three key areas: how Australia should manage the growth of large data centres and AI training facilities, what mandatory requirements should apply to data centre operators, and what conditions should govern the training of AI models within Australia.
For data centres, the government is seeking feedback on how large facilities are affecting local communities and infrastructure, as well as what transparency and reporting obligations should be imposed on operators.
Stakeholders are also being asked how data centres could provide broader economic and community benefits, including through local investment, jobs, infrastructure upgrades and support for Australian technology capability.
The consultation also turns its attention to domestic AI model development, asking whether Australia’s current policies, regulations and infrastructure are sufficient to support large-scale AI training.
It seeks views on the safety and security safeguards that should apply, how AI developers could contribute to Australian research and skills development, and what barriers are currently limiting investment in local AI training infrastructure.
The government said increasing the amount of AI training carried out in Australia could attract new investment, support research and create highly skilled jobs, while also giving the country greater influence over how AI systems are developed and operated.
It said the decisions made now would play a significant role in determining how AI affects Australia’s economy, workforce, national security and environment in the years ahead.
Technology developers and providers, industry bodies, researchers, businesses, workers and members of the public are being encouraged to make submissions.
Responses received through the online consultation process will be considered alongside targeted stakeholder engagement and further work with Commonwealth, state and territory governments before the final standards are developed.
