Australia data centres may be banned near schools, homes

Australian Prime Minister Anthony Albanese will seek to stop large data centres from being built near schools, homes and farms when he meets state leaders this week, according to plans seen by AFP.

The proposal is part of a planned national artificial intelligence law that the government wants to move quickly. The law is expected to set rules for AI training, including copyright, security and safety, and Albanese is due to meet state leaders on Wednesday to seek agreement on nationwide legislation.

Albanese is expected to outline minimum national standards for data-centre water and energy use and rules to reduce community impact by steering facilities away from homes, schools, prime farmland and possible housing sites.

New South Wales has said it is assessing 26 new data centre projects worth AU$100 billion ($71.7 billion). The state already has 90 operating data centres after construction grew 65 percent annually over the past three years.

A proposal to build a data centre near a school in the World Heritage-listed Blue Mountains was withdrawn in June after community opposition.

At a business dinner on Tuesday, Albanese is expected to say that hosting large-scale AI training data centres would help Australia capture more of the economic value and strategic influence of AI, while ensuring AI is developed safely and with copyright protections.

US startup Anthropic has lobbied Australian officials to change copyright laws to help train AI models, prompting opposition from media companies, musicians and other creators.