A Senate inquiry has opened submissions into the rapid expansion of AI datacentres in Australia, with the investigation set to examine the economic, environmental and social consequences of growing artificial intelligence infrastructure.
The inquiry will be chaired by Sarah Hanson-Young and will focus on the increasing demand for resources associated with AI development and operation.
Among the issues under examination are energy consumption, water use and the potential impacts of datacentre growth on local communities.
Scrutiny of AI Infrastructure Growth
The inquiry comes amid continued investment in AI technologies and the supporting infrastructure required to process large volumes of data.
Lawmakers will consider whether existing regulations remain adequate as datacentre development accelerates across Australia.
The investigation is also expected to examine broader economic implications linked to the expansion of AI-related facilities.
Concerns Raised by Greens Senator
Announcing the inquiry, Hanson-Young argued Australia’s regulatory framework was not keeping pace with the growth of the industry.
“AI is the new extractive industry and Australia’s regulations are lagging behind,” she said.
The Greens senator compared large AI datacentres with resource extraction industries, arguing they consume significant amounts of data, energy and water.
Community and Resource Impacts
Hanson-Young warned that unchecked expansion of datacentre infrastructure could place pressure on local communities and essential resources.
“Like the gas industry, these massive data miners want to extract Australia’s resources for free, paying very little for the data, water and energy all used to make their huge corporate profits,” she said.
She also expressed concern about the potential impact on energy and water supplies if development continues without stronger oversight.
“If we don’t put the handbrakes on this rapid datacentre development our communities, energy and water resources will be at risk.”
The Senate inquiry will now receive submissions as it begins examining the future regulation and impacts of AI infrastructure in Australia.