Requirements for data centre developers to provide their own energy is one idea the prime minister is keen to take to the world stage if he can lock in a national agreement.
Anthony Albanese will outline new rules for developers, blocking them from building data centres near homes or prime agricultural land in a speech on Tuesday night.
He told the ABC setting national standards could result in Australia becoming a world-leader in managing data centre investment.
"I'll be going to the United Nations next month," Mr Albanese said, noting his intention to take up the issue while in New York.
"Just as we have led the world in social media with the ban (for under-16s) ... we can lead on AI and seize the opportunities while minimising any downside as well."
It comes before a speech to the Business Council of Australia annual dinner where Mr Albanese will detail further obligations for data centres.
As well as requiring new data centres to add more renewable energy to the grid than they take out and to minimise water use, they will also have to lessen community impacts by being appropriate for their size and avoiding sites that could be used for housing instead.
That could put an end to proposals such as one planned in Macquarie Park in Sydney's north, where developer NextDC is trying to build a data centre next to a metro station.
The City of Ryde has strongly objected to the proposal, saying it would result in under-utilisation of transport infrastructure and undermine attempts to reduce the housing shortfall.
In his speech, Mr Albanese will say Australia must harness the positive opportunities of AI while minimising the downsides.
"Australia is in a strong position to attract investment in data centres, but maintaining social licence will be essential," he will say on Tuesday.
"That means ensuring energy bills do not rise, water security is maintained and locations are appropriate."
Mr Albanese has pledged to introduce mandatory requirements for AI and data centres in early 2027 and the meeting with state and territory leaders on Wednesday will be the next step to get national agreement on the standards.
But Queensland Premier David Crisafulli is pushing back on the requirement for data centres to use renewable energy, arguing it would drive away investment and push up power bills.
The Queensland government is developing its own approach, which will allow data centres to use gas and coal power, as well as requiring them to provide a social impact assessment and sign agreements with local councils.
"We are technology agnostic. And by doing so, we will be able to bring on all forms of energy," Mr Crisafulli said.
Business Council chief executive Bran Black welcomes the prime minister's front-footed approach to AI.
In a separate speech to the Business Council dinner, Mr Black will argue Australia must not lag behind the rest of the world in adoption of AI and other innovative technologies.
Tracking AI adoption will be part of a national roadmap he will unveil at the event to make Australia a top-10 investment destination and fix the nation's falling productivity and living standards.
Mr Black will also voice the business community's opposition to tax changes in the budget, and reiterate concerns about a "complex and out-of-balance" industrial relations system and excess regulation.
Businesses were encouraged to see Treasurer Jim Chalmers launch a new Productivity Commission review of reporting requirements on Monday.
The review, alongside Treasury's release of a consultation paper on climate-related financial disclosures, was a "positive step towards reducing unnecessary compliance costs and red tape", Australian Chamber of Commerce and Industry chief executive Andrew McKellar said.
Australian Associated Press