2026-06-25

AI is the new extractive industry

By Senator Sarah Hanson-Young


A data centre so big it needs its own gas turbines to not trip the power grid. A US tech bro declaring that Australia can be a world leader in data centres. 3.5 billion litres of drinking water supply being drained in Sydney. A wrecking ball through our clean energy transition.

This is our new normal in Australia because the big tech giants have decided we’re easy pickings. Our existing regulations for AI and data centres are weak and are failing to protect our communities and vital resources like energy and water. We need a moratorium on these centres and we need it now. 

Every day I am hearing from people who are concerned about the impacts of AI. Whether it’s about the water and energy use, the noise and air pollution, the fast tracking of these projects, or just being frustrated that these companies are getting a free pass to extract our intelligence and data – Australians are not happy that these AI giants have been given free rein.

We’re seeing a rapid push across Australia to build these huge data centres – all to line the pockets of the likes of Elon Musk, Jeff Bezos and Sam Altman, while Australians get nothing in return.

This can’t just be another tech bro free for all. We need to make sure that community voices are actually heard. 

That’s why the Greens secured a parliamentary inquiry into artificial intelligence and data centres. I’ll be chairing this inquiry, where we will be looking into current weak regulations, and the impacts of these data mining megacentres on the environment.

As a South Australian, I’m very concerned about the disregard for our water resources. We’re the driest state in the driest continent and our River Murray has suffered from decades of over-extraction. The Murray shouldn’t have to suffer that fate again just because the tech billionaires want to make a buck.

But the South Australian Government has just announced its own Data Centre Strategy, flaunting a deal with IREN to build an 800MW data centre – a facility two times bigger than any data centre built yet in the Asia-Pacific region. 

800MW is more energy than all the households in Adelaide’s metro region combined. I’ll say that again. This one facility will use more energy than the households in Adelaide’s metro region combined

And they want to use this for a single data mining centre? There is no clear benefit to the local area. It’s hard to see how this can be justified.

But when our regulations are so weak, it's unfortunately no surprise.

While the government is courting big CEOs, signing deals and fast tracking their data centres, these facilities are draining our natural resources, winding back our clean energy transition, and hurting our communities. 

Will these companies pay a fair price for having these data mining factories based here on Australian soil? 

What dividend will the public get in return?

We risk the same mistakes made with the gas industry – multinational companies strip our resources, export them overseas, and pay very little to no tax. 

We can’t afford to be playing catch up on these regulations. There are already data centres right across the country and immediate plans for many more. They are all gearing up to extract our water and energy and it’s time we mobilised.

I’ve already seen so many communities putting political differences aside and coming together to oppose local plans for these big data mining factories, so now is the time to make your voice heard. Submissions are now open, and I want to make sure your feelings on data centres are made clear to this government. 

If you want to find out more about the inquiry process, upcoming hearings, or how to make a submission, head to the official parliamentary website, the Greens’ submission guide, or contact my office at (08) 8227 0425 or senator.hanson-young@aph.gov.au and my staff will be happy to help.
 

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