At a glance

  • South Australia's royal commission into AI, which began on 1 October 2026, says matters relating to data centres sit outside its terms of reference.

  • On 11 August the government said the terms would focus in part on AI infrastructure and its links to energy, water use and the electricity grid.

  • The signed terms of reference set seven areas of inquiry, from productivity and jobs to education, regulation and public services.

  • The Commonwealth is consulting on national energy and water standards for large data centres, which it intends to legislate in early 2027.

  • Former Fair Work Commission president Iain Ross chairs the inquiry, which reports by 1 July 2027.

South Australia's royal commission into artificial intelligence began on 1 October 2026 with its three commissioners named and its terms of reference published. When the inquiry was announced in August, the government said its terms of reference would focus in particular on five areas, including "opportunities related to AI related infrastructure including the interrelationship with energy transformation, water usage and associated impacts (such as electricity grid implications)".

The commission's own terms of reference page states that "matters relating to data centres are not part of our Terms of Reference". Since September 2025, South Australia's planning regulations have required data centre applications to carry sign-off from SA Water and the Technical Regulator, the state's electricity and gas safety regulator.

The commission describes its remit as "the economic and societal opportunities, implications and consequences arising from artificial intelligence (AI) in South Australia". Its seven areas of inquiry deal with how AI is used, from jobs and schools to regulation and public services.

The Governor sets seven areas of inquiry on 1 October 2026

The signed terms of reference, issued by Governor Frances Adamson under the Royal Commissions Act 1917 on 1 October 2026, set seven areas of inquiry:

  • productivity, innovation and economic growth

  • the social benefits of AI and safeguards against its risks

  • the policy, legislative and regulatory frameworks South Australia needs

  • the labour market and workplace practices

  • schools, universities and vocational education

  • using AI to simplify regulation for South Australian businesses

  • public services, including the health system.

The commission's website lists data centres as a standalone exclusion from its terms. A separate list of matters "primarily within the responsibility of the Commonwealth" covers national security and cyber security, financial market stability, critical national infrastructure, and intellectual property and copyright, which the commission says "are more appropriately addressed through other inquiries, processes, regulatory frameworks or commissions".

The terms direct the panel to have regard to "the degree of strategic autonomy that South Australia should seek to maintain over AI systems data, and critical capabilities", and to consider the views of technology developers alongside those of businesses, unions and academics. Issues papers are due in late 2026 and early 2027.

The Commonwealth consults on national data centre energy and water standards

First ministers at National Cabinet agreed on 26 August 2026 that the Commonwealth will develop mandatory standards covering data centre energy, water and land use, with legislation planned for early 2027. On 17 September the Department of the Prime Minister and Cabinet published the consultation paper, Getting it right: Building AI infrastructure that works for Australia, which proposes that large data centres "bring forward new renewable generation to fully offset their energy demand", backed by gas, batteries or hydro when wind and solar output falls, and minimise water use, prioritising non-potable and recycled water. The paper proposes applying the standards from 30MW, with heavier requirements above 100MW.

The paper says the standards "will complement, not duplicate, state and territory planning and approval processes". States keep planning approvals and environmental assessment, and can set requirements above the national minimum.

South Australia released a data centre strategy on 23 June and announced a Data Centre and AI Infrastructure Act with it, which would give data centres essential-infrastructure status and put major projects with the state's Coordinator-General. The bill is yet to be introduced to state parliament. The state-by-state guide to Australian data centre policy compares South Australia's approach with the other jurisdictions.

IREN and Firmus plan South Australian AI campuses

IREN holds a transmission connection agreement for its 800MW campus at Bundey and targets energisation from 2028. Firmus has a 12-year, 600MW supply agreement with Gunvor to power the AI factories it plans at Tailem Bend and Stirling North. GreenPoint Energy's 200MW Koolunga battery is the first asset under that agreement.

Premier Peter Malinauskas, announcing the commissioners on 1 October, said "the AI boom presents significant risks but also opportunities".

Iain Ross chairs a panel of three

Dr Iain Ross AO led the Fair Work Commission from 2012 to 2022, is a former Federal Court judge, chairs the Net Zero Economy Authority and sits on the Reserve Bank's Monetary Policy Board. Kate Pounder was the inaugural chief executive of the Tech Council of Australia, the national industry body for technology companies, and is a director of Essential Energy, the NSW government-owned electricity network company. Professor Christopher Manning, an Australian, directed the Stanford Artificial Intelligence Laboratory from 2018 to 2025 and is a senior fellow at Stanford's Institute for Human-Centered Artificial Intelligence.

The government set a budget of about A$3 million when it called the inquiry on 10 August.

What to watch

National standards submissions. Consultation on the Commonwealth's data centre standards closes on 9 October 2026, ahead of draft legislation for early 2027.

South Australia's data centre bill. Introduction to state parliament would put the essential-infrastructure status and the Coordinator-General's role into law.

The commission's issues papers. The first, expected to cover education, skills and training, is due in late 2026, and later papers will set further topics for submissions.