The NSW government expressed enthusiasm for OpenAI establishing a datacentre in Sydney, with Environment Minister Penny Sharpe noting the city’s appeal as a prime location. However, internal communications revealed caution regarding the potential implications of artificial intelligence, particularly referencing the fictional Skynet from the Terminator films.
OpenAI's Australian Expansion
In a significant move, OpenAI has partnered with datacentre operator NextDC to create a multibillion-dollar computing cluster in Sydney. This marks OpenAI's first office in Australia, announced in August 2022 and opened in December.
Emails disclosed in the NSW parliament indicate that the office of Technology Minister Anoulack Chanthivong initially described the government as “absolutely thrilled” about the announcement. However, the phrase was later removed, reflecting a more cautious tone among staff regarding the implications of AI technology.
Concerns Over AI and Datacentres
Despite the excitement surrounding the investment, discussions among government staff included jokes about a potential “Skynet situation” developing within five years. One staff member humorously suggested caution against endorsing a “golden era” of AI, emphasizing the need for responsible technology use.
The government’s commitment to embracing AI opportunities is tempered by community concerns about the environmental impact of datacentres, particularly regarding their energy consumption and emissions. The NSW environment minister stated that Sydney remains a “highly desirable location” for tech companies.
Environmental Impact and Future Strategy
While the NSW government is developing a strategy for datacentre growth to support the AI sector, details on its release are pending. The environmental implications of datacentres are significant, as they often rely on diesel generators during power outages, raising concerns about air pollution.
Documents from a recent meeting indicated that if all large datacentres in the Sydney basin were to operate their generators simultaneously, the air pollution could exceed that of all electricity generation in NSW. Belinda Dennett, CEO of Data Centres Australia, downplayed the scenario as unlikely but acknowledged the need for careful management of emissions.
As the NSW Greens MLC Abigail Boyd pointed out, current assessments of datacentre air impacts may underestimate their cumulative effects on the energy grid, potentially leading to increased blackout risks.
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