Prime Minister Anthony Albanese has unveiled 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 data centre operators to cover the cost of new energy generation in response to concerns from communities about the environmental impacts.
But advocates are urging the government to introduce temporary protections in the immediate term, after Mr Albanese conceded the regulations would only target new centres.
This would allow developers to seek approval under the current patchwork of state and territory rules until the national regulations take effect.
The delay could create a window for companies to avoid stricter environmental regulations, Australia Institute senior economist Matt Grudnoff said.
"There needs to be an urgent conversation about what we're going to do in the interim between when the regulations come out and now," he told AAP.
"There's a distinct possibility that this will take longer than what the government thinks."
Climate Council chief executive Amanda McKenzie said the new regulations should be extended beyond new projects to those in the planning phase.
"Of the 90 data centre projects in the pipeline, the vast majority haven't broken ground yet – less than one per cent of the 20 GW pipeline is under construction," she said.
"The government must make sure its rules apply from day one to projects that have already submitted planning approval documentation, not just ones that are entirely new."
Mr Albanese announced the new framework in a landmark speech on Wednesday, signalling a shift away from a more voluntary, targeted regulatory approach.
On Thursday, he confirmed the new rules would only apply to future proposals, not projects under construction or built.
"You can't retrofit," he told ABC Radio Sydney.
He said existing projects were largely smaller and state and territory governments should already be considering impacts on energy and local communities.
The Greens have called for a moratorium on new data centres until the regulations are finalised, warning they risk draining Australia's energy and water resources.
But Industry and Science Minister Tim Ayres pushed back, describing a temporary pause as a "pretty dopey position".
"The data centre expectations are being worked through with the states ... it's very clear to see the direction of travel here," he told the ABC.
Mr Albanese said the government would also move to ensure workers in the arts were properly compensated for the use of their work in training AI algorithms.
But the plan was nothing more than motherhood statements with little detail, Opposition Leader Angus 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.
Business groups warn too much regulation would stifle investment, with one of Australia's biggest banks estimating a data centre pipeline exceeding $155 billion.
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