AUSTRALIA WILL ENACT laws to regulate how artificial intelligence data centres use power and water, and to protect creative copyright, the country’s prime minister Anthony Albanese said.

In a landmark speech setting out his government’s policies, Albanese sought to allay public concern over AI, saying it could be adopted in a way that enhanced the national interest.

The centre-left leader said he would meet Australia’s state and territory leaders next month to discuss the proposed laws, which would be introduced next year to build trust in AI and protect national security.

Australia had led other countries in imposing limits on social media use for children, but the challenge to shape AI in Australia’s interest was greater and demanded action now, he said.

The UK has followed in its suit plans to implement a ban on social media for children under 16 - something Taoiseach Micheál Martin said is being examined at an EU level.

Albanese said letting others write the AI rules “would mean subcontracting our national sovereignty and security to the control of foreign monopolies”, he said in a speech at the University of Sydney.

“Our great country can be much more than a data warehouse for AI products made overseas.”

Albanese’s speech came after it emerged this week that US startup Anthropic had lobbied Australian officials to change copyright laws to assist the training of AI models, as it considered investing in data centres in the country.

Musicians, writers and publishers have urged the government to resist such pressure and protect their work.

Australian creative content was not “up for grabs”, and the new laws will provide “the strongest possible protection for Australian artists and Australian media”, Albanese said.

“No company should use Australian books, music, art or news to build or train AI without the artist’s control. That includes the artist’s control of the price and value of their work. Anything less is theft,” he said.

The new standards would set clear legal obligations for large data centres, requiring them to put more power into the electricity grid than they take out so AI does not increase power prices for Australians, and ensuring they do not compete for land with housing.

Data centres will also be required to minimise water usage.

Investment in data centres was the largest contributor to the country’s economic growth in the three months to March, although most of the equipment was imported, according to government figures.

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Albanese said Australia “cannot settle for a short-term boom in capital expenditure and construction”.

Government data showed Australia had not yet seen the impact of AI on the jobs market.

“We should not treat AI as a threat to good jobs. We should use it as an instrument to create them,” he said.

The government will elevate its response to artificial intelligence with a dedicated office in Albanese’s department to oversee policy.

“Getting this right will enhance our appeal to international investors, by delivering greater clarity and speed for approvals, and a streamlined process for verifying compliance,” he said.