Senator David Pocock Proposes 5 Percent Levy on AI Factories
Senator David Pocock proposed a 5 percent levy on hyperscale AI data centers to fund social housing and offset environmental costs.
ACT Senator David Pocock proposed a 5 percent levy on AI factories owned or operated by hyperscale technology companies, including Google, Microsoft, and Amazon. Speaking at the National Press Club on Wednesday, Pocock argued that the federal government is starstruck by US AI firms and is ignoring the long-term costs and community concerns regarding the water and energy consumption of data centers.
The proposed tax would target facilities that draw more than five megawatts from the national power grid, though it would exclude co-location centers. Modeling from the Parliamentary Budget Office indicates the levy could generate nearly $500 million over four years, potentially reaching nearly $3 billion by 2036-37. Pocock suggested these funds could be used to offset federal spending on social and affordable housing.
Belinda Dennett, CEO of Data Centres Australia, opposed the proposal. She warned that the tax could make Australia uncompetitive and discourage mobile global capital from investing in the country.
