Our submission to the Australian Government's AI Infrastructure Consultation
Australia is well placed to attract large-scale frontier AI training investment, clear conditions are needed to protect energy consumers, support communities, and secure lasting national benefits.
The Australian Council on AI Strategy has made a submission to the Australian Government’s consultation, Getting it right: Building AI infrastructure that works for Australia.
Australia is well placed to attract large-scale frontier AI training investment. But this infrastructure will place significant demands on the electricity system, and the benefits are not automatic. Clear conditions are needed to protect energy consumers, support communities, and secure lasting national benefits.
The submission argues that hosting frontier AI training compute, rather than simply inference compute, is a prerequisite for Australia to have meaningful influence over how the technology develops. It recommends that large data centres secure additional renewable energy supply, meet their infrastructure costs and operate flexibly to limit pressure on the grid. It also calls for stronger engagement with communities, particularly First Nations organisations, investment in domestic AI capabilities and swift resolution of the copyright impasse.
ACAIS has commissioned independent energy market modelling, with preliminary findings suggesting that electricity price impacts can be managed through well-designed conditions, and that additional demand could help accelerate investment in renewable energy.
The impacts of energy demand generated by AI infrastructure can be managed through well-designed conditions and additional demand could help accelerate investment in renewable energy.
From the submission