Australia Charts Course for AI Leadership with New National Strategy
December 1, 2025
The Australian government has launched its National AI Plan, a comprehensive framework designed to position the country as a competitive hub for artificial intelligence development and investment. The strategy pivots from earlier considerations of standalone AI legislation, opting instead to leverage existing technology-neutral laws while prioritizing the expansion and sustainability of the critical digital infrastructure underpinning AI, notably data centers and compute capacity.
The plan identifies domestic compute power and robust connectivity as fundamental enablers for AI adoption. It outlines a coordinated national approach to scaling advanced chip access, high-quality data center hosting, and supporting subsea cable systems. With data center power consumption already reaching approximately 4 terawatt-hours in 2024 and projected to potentially triple by 2030, the government emphasizes the urgent need for grid readiness, new renewable energy capacity, and battery storage to support this growth.
A core component is the introduction of national data center principles, which will guide future development on renewable energy procurement, water efficiency, demand flexibility, security, and workforce development. The government intends to streamline planning approvals for projects adhering to these principles, aiming to provide greater certainty for an industry facing over AUD 100 billion in proposed developments. This framework seeks to balance rapid infrastructure expansion with environmental and community considerations.
Industry leaders have welcomed the plan's direction. Guy Danskine, Managing Director of Equinix Australia, stated the company is "broadly aligned with the Department of Industry, Science and Resources on the spirit of the eight data centre principles." He highlighted the value of their tech-agnostic nature, allowing operators to tailor solutions to local conditions. Danskine emphasized that "a cohesive plan involving Commonwealth and state collaboration is necessary to prepare the grid for the electrification of everything," advocating for support of diverse energy delivery configurations.
Belinda Dennett, CEO of Data Centres Australia, praised the plan's "strong recognition of Australia’s opportunity to be a leading market for data centre investment." She supported the national principles to ensure sustainable investment aligned with national interests, noting that "speed to build is the most critical factor" and welcoming measures to accelerate permitting. Dennett also endorsed initiatives like the Key Apprenticeship Program to address workforce development in AI infrastructure and clean energy sectors.
On regulation, the plan marks a deliberate shift away from an EU-style AI Act. It establishes an AI Safety Institute to monitor risks but will primarily rely on current laws, reviewing their application to areas like consumer protection and copyright to identify future gaps. This approach aims to avoid stifling innovation with premature regulation while maintaining the flexibility to address emerging risks, reflecting a strategy to attract investment by providing clarity without excessive burden.
Source: w.media
Australia Unveils National AI Plan, Emphasizing Sustainable Data Center Growth and Tech-Neutral Regulation
