Overview
- ACT senator David Pocock has formally proposed a 5% levy on hyperscale data centres he calls 'AI factories' to secure local benefits from major tech investment.
- Parliamentary Budget Office modelling cited by Pocock indicates the levy could raise roughly $500 million in the near term and about $3 billion by 2036–37 but explicitly flags a high degree of uncertainty due to limited data on centre revenues and customers.
- The proposal would apply only to facilities drawing more than 5 megawatts from the grid and would exclude colocation centres that rent space or small-scale compute to many customers.
- Industry group Data Centres Australia and other sector voices warn the levy could deter globally mobile investment and make Australia less competitive in an already costly market.
- Supporters say the charge could fund housing and local infrastructure and respond to recent market strains and community concerns over energy and water use, while opponents say it risks slowing pledged investment from firms such as Amazon and Microsoft.