Clean up AI or go away: rules proposed for data centres
Australian planning authorities should delay development approvals for data centers until they can ensure the AI models they host do not breach the law.
Groups emerging ahead of the NSW government’s data center inquiry issued a proposal alongside calls on Friday to ensure developers use renewable energy to power data centers and do not evade planning laws.
But a lobby group for the emerging industry said the amount of water used in data centers was exaggerated and building more local facilities would give Australia greater control over the future of AI.
Three groups attended the first hearing of the case NSW Legislative Assembly inquiryIt was established in January to investigate whether the state was equipped to address the environmental and economic impacts of data center development.
Ninety data centers have been established in NSW, more than any other state, as companies seek to meet demand for AI technology.
But Claire Pullen, president of the Australian Writers Guild group, told the investigation that some prolific AI firms had trained their models using copyrighted Australian works and had resisted efforts to disclose, license or remove the content.
He said Australian governments could apply pressure using development planning laws.
“Honestly, a relatively low-effort job for the government is to say that until you make those disclosures or quarantine those particular models or types of data, your planning consent will not apply to the data centre,” he said.
“It could be a way to give preferential treatment in planning and purchasing to tech companies that are prepared to certify that all the data in their hubs is ethical and that the models they run in their hubs are free of plagiarized work.”
Protocol Policy Lab research fellow Devjeet Matta told the committee that other considerations for approving data centers should include commitments to use renewable energy and meet existing planning laws.
In Singapore, for example, data centers are approved if they meet set criteria, and the UK provides incentives for building facilities near wind farms.
“It’s really urgent to get these data centers certified and ride the AI wave, but I also think it’s important to keep sustainability metrics in mind,” he said.
Belinda Dennett, who appeared on stage on behalf of the Data Centers Australia group, said the environmental impact of data centers was exaggerated.
He dismissed as misinformation Sydney Water’s prediction that data centers would use 25 per cent of potable water by 2035, saying an industry report had found that proportion would be significantly lower.
“(Australian Bureau of Statistics) water calculations show data center water use is 0.04 per cent of Australia’s water use and less than one per cent of Sydney’s water use,” he said.
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