Australian politicians and industry leaders say the growing backlash against AI datacentres is a 'faux import' from the United States, driven by social media rather than local conditions, the Guardian reported. They argue Australia's buildout is smaller and more tightly regulated than America's.

"We are not the United States," a federal energy minister said, arguing that Australian planning, energy and water systems are more carefully monitored and managed. Data Centres Australia head Belinda Dennett said the US has about 5,400 datacentres with 53.7 gigawatts of capacity, compared with 252 in Australia at 1.4 gigawatts.

Critics disagree. University of Sydney professor Rob Nicholls said a proposed 2-gigawatt gas-powered centre in the Northern Territory would use as much electricity as 2 million households, in a territory with just over 265,000 people. Two state inquiries and one federal inquiry are now examining the sector, and there are calls for a moratorium on new builds.

Why it matters: the dispute will shape how Australia powers its AI ambitions. What happens next: the federal government plans legislation requiring datacentres to bring in new renewable energy equal to what they consume, but the rules are unlikely before next year.