Senator David Pocock has raised concerns over the billions of dollars being poured into AI datacentre investments in Australia, questioning the benefits for the Australian people. He warns that the nation risks repeating mistakes made with the gas industry, where multinational companies extracted enormous value while paying minimal tax.
Lessons from the Gas Industry
In recent months, tens of thousands of Australians have emailed their local MPs calling for a 25% tax on gas exports. More than 2,200 people have funded billboards promoting the idea. The frustration stems from multinational gas companies posting enormous profits from exporting finite resources while paying less in petroleum resource rent tax than Australians pay in beer excise. Pocock argues that this revenue could fund aged care, affordable housing, conservation, or a sovereign wealth fund.
AI Datacentre Investments Surge
Australia is witnessing a surge in AI datacentre investments. Microsoft has announced $25 billion, and Amazon Web Services has committed $20 billion. Prime Minister Anthony Albanese has welcomed these investments, but Pocock insists on asking bigger questions about national benefit.
By 2030, Australian datacentres are expected to consume as much electricity as all Victorian households combined. Water consumption is forecast to triple. The Climate Council warns that without significant new renewable generation, wholesale electricity prices could rise over 20% by 2035. Concerns also include noise and air quality from backup diesel generators and gas usage.
Weak Government Response
The Albanese government has set voluntary 'national expectations' for AI datacentres, which Pocock calls a remarkably weak approach for an industry with such enormous impacts. He notes that while datacentres create construction jobs, ongoing employment benefits are minimal. This contradicts the minister's claims that datacentre investment will offset AI job losses, which have already topped tens of thousands, with projections exceeding 600,000.
Existential Risks and Job Displacement
Pocock questions the rush to embrace AI without addressing its potential to disrupt society and pose existential risks. He warns that AI and robotics may replace human labour, and the promise of new jobs may be wishful thinking. He urges Australia to learn from past mistakes and ensure fair returns from multinational tech companies using Australian land, energy, water, and workers.
David Pocock is an independent senator for the Australian Capital Territory.
