Australia’s AI datacentre backlash has become a national issue in 2026, prompting protests, three government inquiries and calls for a moratorium. Officials and industry leaders say US debate is fueling resistance; critics cite local energy and water concerns.
Data Centres Australia head Belinda Dennett cited 252 Australian datacentres with 1.4GW capacity, against 5,400 in the US with 53.7GW, arguing the US debate is being transplanted from a larger market. US centre counts vary; Australia has just under one centre per 100,000 residents, compared with 1.5 in the US. Planned projects include a 2.4GW centre in outer Melbourne and a 2GW gas-powered centre in the Northern Territory. University of Sydney professor Rob Nicholls said 2GW equals two million households’ annual electricity use; the territory has just over 265,000 residents.
The federal government plans to override states and bar gas-fired power for datacentres, while requiring operators to add new renewable energy equal to their consumption; legislation is not expected until next year. Assistant technology minister Andrew Charlton warned that foreign operators could send much of the AI industry’s economic value offshore and urged them to offer Australian startups, researchers and nonprofits compute access on favorable terms.
