Senator Pocock demands 25 per cent tax on AI datacentre investments
David Pocock argues that without robust regulation and fair taxation, Australian communities will bear the environmental and social costs of the artificial intelligence boom while profits flow offshore.
Independent Senator for the ACT David Pocock has called for the introduction of a 25 per cent tax on artificial intelligence datacentre investments, arguing that multinational technology companies must pay a fair share for their use of Australian land, energy, and water. In an opinion piece published in The Guardian, Pocock warned that the current approach to the AI sector risks repeating the policy mistakes made during the gas export boom, where profits were extracted offshore while local communities absorbed the environmental and social costs.
Pocock cited specific investment commitments from major technology firms, noting that Microsoft has announced $25 billion for Australian datacentres and Amazon Web Services has committed $20 billion. He criticised the Albanese government for welcoming these investments with open arms despite growing community backlash, describing the reliance on voluntary “national expectations” for regulation as insufficient given the sector’s significant economic and environmental impacts.
The senator highlighted projections indicating that by 2030, Australian datacentres will consume as much electricity as all Victorian households combined, with water consumption forecast to more than triple. Citing the Climate Council, Pocock noted that without significant new renewable generation and storage, the growing demand from datacentres could push wholesale electricity prices up by more than 20 per cent by 2035. Additional concerns were raised regarding noise, air quality, and the use of gas and diesel backup generation.
Addressing the economic implications, Pocock pointed to data from Jobs and Skills Australia commissioner Barney Glover, who stated that AI-related job losses in Australia have already exceeded tens of thousands, with projections of more than 600,000 losses. While acknowledging that datacentres create construction jobs, Pocock argued that their ongoing direct employment benefits are minimal, challenging the government’s focus on investment figures as a proxy for national benefit.
Pocock drew a direct parallel to the political controversy surrounding gas exports, where public campaigns demanded a 25 per cent tax after multinational companies minimised petroleum resource rent tax payments. He argued that governments of both persuasions have historically prioritised vested interests over national interests, leaving Australians with debt and insufficient public services. The senator concluded that if multinational tech companies are to use Australian resources to power the AI revolution, the public deserves a fair return in the form of tax revenue to fund aged care, housing, and environmental protection.