Tuesday 7 July 2026

Member for Mallee Dr Anne Webster MP says it is positive that Labor finally seems to realise the importance of social licence when it comes to data centres and AI, showing they’ve learned from stoking division through their ‘Rewiring the Nation’ energy rollout – while warning AI’s water demand is a critical consideration for Mallee farmers.

“In Mallee, we’ve seen this movie before – be it for mineral sands projects, transmission lines, wind turbines, or solar installations. First Labor say they want the developers to act responsibly, then they talk about the need for ‘fast-tracked’ developments, and soon enough Victorian Labor are using draconian powers to railroad communities into wearing developments they do not want,” Dr Webster said.

Prime Minister Albanese is expected to make a speech on AI policy this month, and there is speculation Labor will say it expects better local outcomes for communities where AI centres are placed.

Dr Webster said the lived experience in Mallee - and across regional Australia - from Rewiring of the Nation shows Labor are good at the one-liners but treat local communities with disrespect and disdain.

“Labor’s energy rollout has been disastrous for locals. People don't want transmission lines. Yet the government continues to subsidise these often foreign-owned entities to plough ahead with energy projects, railroading our communities.  Regional communities are already pushing back on AI data centres and have made it clear they will not tolerate token financial gestures to local communities,” Dr Webster said.

“As I discussed with the ‘Northwest Nine’ – nine councils affected by Labor developments in the region with tokenistic local consultation – projects create demand for housing, infrastructure and, in the case of data centres – a lot of water.  Project proponents make a lot of money from taxpayers through subsidies and do not care about disrupting our regions.

“Data centres’ water demand is a big issue and - remembering how large the Murray-Darling Basin is, and that water is tradeable from anywhere in the Basin to somewhere else -  data centres will affect Mallee farmers if they consume Basin water.

“Mallee irrigators are stressed with water prices while Labor have endorsed the Commonwealth Environmental Water Holder (the CEWH, which owns 72 per cent of all Basin water) to continue buying more water out of the consumptive pool – even though the CEWH do not use 30 to 40 per cent of their water in most years. Data centres in the Basin will make water stress worse for farmers.”

“Labor have proven time and again they are cunning with the one-liners but regional Australians are once-bitten, twice shy.  We deserve respect, not clever political tricks.”

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