Anthony Albanese has unveiled new legal standards for artificial intelligence and data centres, setting up a framework to manage the rollout of the emerging technology which will be introduced in early 2027.
The government plans to require AI data centre operators to cover the cost of new energy generation in response to concerns from communities about the environmental impacts.
But the rules will only cover the construction of new centres, not those already being built, Mr Albanese said on Thursday.
"This ... will be for new proposals. You can't retrofit," he told ABC Radio Sydney.
"Many of the centres which are (already) under construction tend to be smaller ones. What we're talking about here is very large data centres, need to be in appropriate locations, need to make sure they add energy to the grid," Mr Albanese said.
"One would hope that was something that was considered prior to approval by state and territory governments already."
Mr Albanese said the government would also move to ensure workers in the arts, including writers, musicians and those in the media, were properly compensated for the use of their work in training AI algorithms.
"People's creativity is, of course, property effectively," he said.
"If you have property used without consent and without payment, then that is a form of theft."
But the plan was nothing more than motherhood statements with little detail, Opposition Leader Angus Taylor said on Thursday.
"All he's done is create an office in an office, more bureaucracy," Mr Taylor told Nine's Today Show.
The opposition leader said more information was needed on whether unions would have vetoes over AI use, how Australia would get access to leading AI models from the United States, and how writers, musicians and other creatives would have their intellectual property protected.
The Greens and some experts have called for a moratorium on new data centres until the regulations are finalised, warning they risk "draining" Australia's energy and water resources.
"We need to make sure these centres aren't a drain on us and insist at a minimum on additional renewables," UNSW professor and AI researcher Toby Walsh told AAP.
"The devil is often in the detail and it's good there will be a whole-of-government approach to AI's whole-of-economy transformation.
"But there wasn't any additional spending in the announcement, particularly when research and development is at a record low in Australia."
But Industry and Science Minister Tim Ayres said a temporary pause on new data centres was not the answer.
"It's a pretty dopey position that just takes us backwards," he told the ABC's AM program on Thursday.
"We cannot afford to stand still as a country. The data centre expectations are being worked through with the states ... it's very clear to see the direction of travel here," Mr Ayres said.
Business groups warn too much regulation will stifle investment, with one of Australia's biggest banks estimating the data centre pipeline will exceed $155 billion.
Business Council chief executive Bran Black acknowledged community concerns about data centres needed to be respected.
OpenAI, which opened its Australian office in December, has signed an agreement to become the initial offtake investor for a proposed data centre in Western Sydney.
A company spokesperson said the organisation wanted to work with Australia to help the nation reach its ambitions.
"This is truly a once-in-a-generation opportunity for Australia's economy and it's crucial the country gets this right," OpenAI's spokesperson said.
"We are committed to engaging constructively throughout this process with the government, creators and industry on an approach that is practical, sustainable and right for Australia."
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