Albanese to address datacentre controls and AI law at national cabinet meeting

Prime Minister Anthony Albanese is set to use Wednesday’s national cabinet meeting with state premiers to address mounting concerns over the federal government’s new AI legislation. The prime minister will reassure the premiers that forthcoming approval laws for datacentre developments will be designed to complement, rather than override, existing state regulations. In response to criticism from the conservative administrations of Queensland and the Northern Territory, Albanese has signalled that a major legislative package will be introduced next year to ensure the economic benefits of artificial intelligence are distributed broadly across the country.

The announcement comes as the Australian Energy Market Operator (AEMO) projects a seven‑fold increase in power demand from datacentre operations, underscoring the need for coordinated policy on infrastructure and energy use. By aligning national controls with state rules, the government aims to facilitate the growth of AI‑related facilities while managing the anticipated surge in electricity consumption. The outcome of the cabinet talks will shape the regulatory framework that governs the expansion of Australia’s AI and datacentre sectors in the coming years.