The Albanese government will fast-track approvals for energy-intensive data centres in a bid to capture investment from the global artificial intelligence boom, opting to streamline regulation rather than offer taxpayer subsidies as the OECD warns surging electricity demand could jeopardise Australia's path to net zero.
Industry Minister Tim Ayres and Assistant Science Minister Andrew Charlton are finalising national data centre principles with the states that would allow projects meeting sustainability, renewable energy and efficiency benchmarks to access co-ordinated approval pathways.
The move follows an internal debate within the federal bureaucracy, with the government ultimately ruling out direct financial incentives in favour of cutting red tape to attract investors.