Prime Minister Anthony Albanese has established the Office of AI within his department to coordinate the development of data centres, critical infrastructure for AI technology.The initiative aims to address growing public opposition to these facilities, which are seen as environmentally harmful and beneficial to Big Tech.Three key rules have been proposed: data centres must generate their own energy, fund water infrastructure, and avoid displacing housing.However, state cooperation is needed due to the lack of federal control over electricity markets, water supply, and land planning.Business groups oppose mandatory regulations, citing potential investment losses to countries like India.While the government seeks to lead in AI regulation, deeper ethical questions about AI's impact remain unaddressed by this initiative.