An artificial intelligence expert is urging governments to consider the broader impacts of data centres on the eve of a national cabinet meeting.
Labor hopes the meeting of state and territory leaders on Wednesday will end in a national agreement on data centre regulation, including a contentious mandate for developers to provide renewable energy.
The prime minister outlined parts of the proposed agreement, including banning construction on prime agricultural land, at a Business Council of Australia event on Tuesday night.
Maintaining social licence was essential for attracting data centre investment, Anthony Albanese said.
But artificial intelligence expert Toby Walsh said developers of data centres had failed on this front.
"They're rapidly losing the public's consent for what they're doing," the University of NSW professor told AAP.
"As they have already lost in the United States, where many states have actually put a moratorium on building new data centres."
The Australian Energy Market Operator reported 165 data centres in operation across Australia with 225 in development.
Prof Walsh welcomed Labor's proposed guardrails, but said it was a shame the government missed the boat to properly regulate the projects and prepare the workforce.
"I would love to see it grandfathered, but I can understand why the government will be very reluctant to do that," he said, citing likely legal challenges over additional costs.
"One of the things the data centres require is vast numbers of smaller keys, electricians to build because they're full of electrical kit.
"But there won't be many jobs once they're running. It's, you know, a security guard and his dog to run a data centre."
Labor is confident it can meet the demands of the national energy grid and growing investment in data centres.
Energy Minister Chris Bowen told reporters on Tuesday he won't let the Queensland and Northern Territory governments go ahead with projects supported by only gas or coal-based energy, as both jurisdictions are threatening to do.
"The Constitution is pretty clear about, if there's a dispute between Commonwealth legislation and state legislation, which legislation prevails," he said.
"The alternative, which is being promoted by the federal Liberal Party and the Queensland government, would see prices go up."
NT Chief Minister Lia Finocchiaro has vowed not to take a backwards step at the national cabinet meeting.
"Territorians hate nothing more than being dictated to by Canberra," she said.
Australian Associated Press