Australia and Oregon Tighten Regulations on AI Data Centers

Governments in Australia and the United States are increasing regulations on AI data centers to address their intensive consumption of electricity and water. In Australia, Federal Water Minister Murray Watt is pursuing national standards that would require data centers to prioritize water-efficient technologies and recycled water. This move comes as forecasts suggest water consumption for data centers in Sydney could surge from less than 1% last year to 25% by 2035. Watt expects some resistance to these standards from the Northern Territory and Queensland.

In the United States, Oregon Governor Tina Kotek has convened a Data Center Advisory Committee to analyze the industry's impact on taxation, land use, and natural resources. The Government of Oregon is currently reviewing more than $400 million in annual property tax breaks provided to the industry. The state has already enacted laws requiring large energy users to cover the costs of the electrical grid to ensure the industry does not place an undue burden on public infrastructure.