Australia to launch world-first 'Office of AI' with green data rules

(ECNS) -- Australia is set to establish a dedicated Office of AI within the Department of the Prime Minister and Cabinet, Prime Minister Anthony Albanese confirmed Wednesday. The landmark federal initiative will unify the nation’s fragmented AI governance under a single whole-of-government framework, marking a world-first centralised regulatory model for artificial intelligence.

The landmark federal initiative will unify the nation’s fragmented AI governance under a single whole-of-government framework, marking a world-first centralised regulatory model for artificial intelligence.

Set to be enshrined in legislation in early 2027, the sweeping reform will impose new mandatory rules for large-scale data centres. Operators will be required to curb water consumption and operate as net energy producers, tightening environmental oversight for Australia's fast-growing digital infrastructure sector.

Currently, Australia lacks standalone national AI legislation. Environmental bodies including the Climate Council have repeatedly warned that unregulated expansion of data centres risks pushing up domestic energy prices and worsening carbon emissions, piling pressure on the government to introduce targeted regulatory safeguards.