09 October 2026

Submission on the Getting it right: Building AI infrastructure that works for Australia consultation paper

ATSE's submission to the Department of Prime Minister & Cabinet provides detailed advice on how to regulate AI data centres and frontier model development.

Read the submission

ATSE's submission to the Department of the Prime Minister and Cabinet's consultation provides detailed advice on how to regulate AI data centres and frontier model development.

ATSE calls for a multi-factor model to scale regulatory burdens and a new test of additionality for new renewable generation supported by data centres. 

The submission also calls for alignment of frontier model regulation with international standards and reserving compute for Australian researchers, start-ups, SMEs and public agencies. 

Australia is already well represented in global AI research, with a research intensity 5.8 times what would be expected for our population; Australian AI research is cited 6.1 times the global average. Leveraging this expertise will be vital to building a sector that strengthens the Australian community and economy.

ATSE has long promoted the need for reasonable regulation of the artificial intelligence and data centre sector. ATSE’s Made in Australia: Our AI opportunity action statement and Unleashing growth: Australia’s AI investment blueprint report both identify a strong regulatory framework as a core enabler of an Australian AI sector. ATSE has also previously called for data centre planning requirements that minimise the impacts of data centres on communities and utilities. Clear, consistent regulation of the AI and data centre sector based on ESG (environmental, social and governance) principles will help to ensure data centres and AI are using Australian resources fairly.

To support this vital work, ATSE makes the following recommendations:

Recommendation 1: Apply regulatory tiers based on the combined capacity of all facilities within a company’s portfolio.

Recommendation 2: Utilise a scaled approach to data centre regulation that considers energy requirements, water consumption, transmission load and criticality, with greater firming, water, engagement and transparency obligations on operators.

Recommendation 3: Require workforce development obligations to create additional training opportunities in nationally recognised university and TAFE qualifications.

Recommendation 4: Require all large-scale data centres to time-match surrendered for the use of Renewable Energy Guarantee of Origin Certificates with their actual energy consumption.

Recommendation 5: Define 'new' renewable capacity using an additionality test, such as long-term offtake contracts or direct investment committed before a project's financial close.

Recommendation 6: Allow an increased Power Use Effectiveness cap only for facilities that use non-potable water or directly invest in water recycling facilities.

Recommendation 7: Adopt a tiered model for frontier model regulation aligned with international regulatory standards.

Recommendation 8: Reserve an independently verifiable share of installed compute for Australian researchers, start-ups, SMEs and public agencies through a national access pool.


 

 
ATSE Computer Mainframe
1
Sep 2026
Submission to the inquiry into artificial intelligence and data centres

Since the beginning of the decade, AI has embedded itself in almost every sector of our economy. If Australia wants to make the most of this opportunity, developing sovereign AI capability should be designated as a national priority.

AI
Technology
Industry & innovation
 
Data Centre AI Computing Istock 2148113350
6
Oct 2026
Submission to the Inquiry into AI Data Centres in Tasmania

Tasmania's cool climate and abundant renewable energy make the state an attractive choice for certain AI and data centre projects. However, these benefits will only be realised if the sector maintains community support.

AI
TAS
Digital futures
 
FWI Responsible AI
23
Nov 2023
Responsible AI: Your questions answered

This collection of short papers developed by the Australian Academy of Technological Sciences and Engineering (ATSE) and the Australian Institute for Machine Learning (AIML) at The University of Adelaide offers an insight into the world of responsible artificial intelligence and the opportunities this presents to Australia.

ESSAYS
AI
Technology