Australian Business Group Warns AI Power Rules Risk Investment

The Australian Chamber of Commerce and Industry warned in a Senate inquiry submission that blanket restrictions on powering artificial intelligence data centres could drive investment offshore. The business group advocated for a source-neutral energy approach, supporting arguments from Queensland and the Northern Territory that data centres in those regions should be permitted to use coal and gas.

This warning follows a proposal by Prime Minister Anthony Albanese to mandate that AI data centres provide their own renewable energy. While an August national cabinet meeting appeared to grant carve-outs for Queensland and the Northern Territory, Energy Minister Chris Bowen denied that such measures were officially signed off.

Treasurer Jim Chalmers highlighted the economic stakes, citing a Treasury brief that suggests AI could increase annual productivity by 1.2 per cent by 2030. While Chalmers described the technology as a transformational development, he noted it may disrupt high-skilled cognitive jobs. Separately, the Council of Small Business Organisations Australia warned that smaller companies risk being left behind in the AI race.