Australian government opens consultation on mandatory AI infrastructure standards

The Australian Government has opened a public consultation on mandatory national standards for AI infrastructure, covering how large data centres use energy, water and land, and what conditions should apply to AI model training on Australian soil.

The standards, which the government intends to legislate, will be developed in concert with state and territory governments and are designed to sit alongside existing planning and approval processes. The consultation closes on 9 October 2026.

The government said the framework aims to support investment and innovation in AI infrastructure while managing the resource and community impacts of a rapid expansion in large-scale data centre construction. It noted that without a coordinated national approach, a surge in new facilities could pressure electricity grids, water supplies and land availability.

The government ⁠created the Office of AI earlier this year to manage the development of AI standards and force data centres to be net producers of energy and limit their water usage

The consultation seeks views on three areas: managing the growth of large data centres and AI training facilities; what requirements should apply to large data centres; and what conditions should govern AI training in Australia.

On data centres, the government is asking stakeholders how facilities are affecting communities and resources, what transparency and reporting obligations should be imposed on operators, and how centres can make positive contributions to the broader economy.

On AI training, the consultation paper asks whether current policies, regulations and infrastructure can support domestic AI model development, what safety and security safeguards are needed, how developers could contribute to Australian research and skills, and what barriers are limiting investment.

The government said hosting more AI training locally would attract investment, support research and create highly-skilled jobs, and that the decisions made now would shape AI's impact on Australia's economy, jobs, security and environment in the years ahead.

Technology developers and providers, industry peak bodies, researchers, businesses, workers and members of the public are all encouraged to submit. Responses through the online submission form will be considered alongside targeted stakeholder engagement and work with Commonwealth, state and territory governments to inform the final standards.