Policy platform · Flagship

The Victorian AI Compact

Intelligence, on our terms.

Artificial intelligence will reshape how Victorians work, learn and are governed. We won't meet it with hype, and we won't meet it with fear. We'll meet it with rules — rules that put people before processors, keep the benefits onshore, guard our water and electricity as the public assets they are, and make every data centre a good neighbour or no neighbour at all.

01 · The moment

The decade that decides who AI works for

Right now, the world's biggest technology companies are racing to build data centres wherever land, water and power are cheapest — and governments are racing to wave them through. Victoria can win from this build-out: jobs, investment, research muscle, and the compute our own hospitals, universities and startups desperately need. Or Victoria can lose from it: sold as 'digital investment' while the processing, the profits and the decisions all flow offshore, leaving us with the power bills, the water stress and the noise.

The difference between those two futures isn't luck. It's policy. The Victorian AI Compact is our plan to make sure that when the intelligence age arrives in our state, it arrives on our terms.

of new data-centre compute reserved for Australian use — including a 10% share free for government, schools and universities
50%
workers on data-centre builds to be apprentices or trainees from the host region
1 in 10
of a data centre's peak power draw covered by new-build renewables it funds — the mandatory quarter extra handed to the community, free
125%
government decisions about you made by AI without a human who is accountable for it
0

02 · Principles

Five lines we won't cross

  1. Humans and communities first

    Technology is a tool, not a constituency. Every setting in this Compact starts from one question: does this leave Victorians — their jobs, their neighbourhoods, their power bills, their privacy — better off?

  2. Our compute, our call

    Victoria's land, water and energy are not a free input for someone else's balance sheet. If the infrastructure is built here, a guaranteed share of its capacity works for Australians here.

  3. Good neighbours or no build

    Data centres are welcome when they employ locally, pay their way in the communities that host them, and meet the world's best cooling and water standards. Operators who won't sign the Compact don't build.

  4. Water and power are protected. Full stop.

    Cooling technology is genuinely improving — closed-loop and immersion systems are slashing water use, and waste heat can warm pools and homes instead of the sky. We'll reward operators who prove it. But better technology earns a licence to operate, never a licence to be believed: Victoria's water and electricity come first, every claim is checked at the meter, and an operator caught lying about its water use loses its licence. No exceptions.

  5. Sunlight over spin

    A public register of every government AI system, independent audits, honest incident reporting and real whistleblower protection. If a machine helps make a decision about you, you have the right to know — and to reach a human.

03 · The Compact

The Compact — eight commitments with teeth

Sovereignty 1 rack in 2

The Victorian Compute Reservation

Every new large-scale data centre approved in Victoria must reserve at least 50% of its compute capacity — one rack in every two — for Australian customers: our researchers, hospitals, universities, startups and public services, at independently regulated, fair rates. Within that reservation, 10% of the facility's total capacity is provided free of charge to Victorian government services and public education — schools, TAFEs and universities — so the state that hosts the machines never has to rent back their benefit.

Why it matters — Without a reservation, Victoria supplies the land, water and power while every processing cycle serves offshore customers. Half the capacity working for Australians is the difference between hosting the intelligence age and merely paying its bills.

Community Local jobs + an annual dividend

The Community Benefit Licence

No large data centre operates in Victoria without a Community Benefit Licence: enforceable local-hire targets for construction and operations, at least one in ten build roles filled by apprentices and trainees from the host region — and an annual Community Dividend with real machinery behind it. The dividend is set per megawatt by the independent regulator, indexed, published in full and paid for the entire life of the facility. Half lands as automatic credits on the energy bills of every household in the host area — no forms, no means test. The rest flows into a Community Benefit Fund governed by a local board on which residents and the council hold the majority, granting to the things towns actually ask for: sports clubs, halls, childcare, libraries, pool upgrades, shade trees. The licence also locks in a guaranteed ongoing workforce — permanent local operations jobs for the life of the facility, not just the construction phase — and mandatory community engagement: funded outreach programs into local schools and TAFEs, open days, and STEM partnerships, written into the licence and reported on. Every rebate, grant and program is published, down to the dollar.

Why it matters — The neighbours who live with the build, the noise and the grid load should be the first to feel the benefit — on their own bills and in their own streets, every single year, for as long as the servers hum.

Environment Lie about water, lose your licence

The Water Truth rule — world's-best cooling, honestly reported

Approval requires best-available cooling — closed-loop, immersion or better — with independently metered water and electricity use published every quarter, no potable water for cooling where recycled water is available, and a serious heat-reuse assessment so waste heat warms pools, greenhouses and homes instead of the atmosphere. Not one drop of toxic or contaminated water goes back into our rivers, aquifers or sewers: anything discharged is treated to independently tested standards, with zero tolerance. Any facility that needs water beyond its approved budget must first fund new water infrastructure — recycling plants, stormwater harvesting, storage — that adds more capacity than it takes, so households and farmers are never left short; in any shortage, data centres cut back first and drink last. Every figure is audited against the meters. Misreporting water or power use is an offence that reaches directors personally, and an operator caught lying loses its licence to operate in Victoria — immediately.

Why it matters — Cooling tech is improving fast and we'll back the operators who prove it — but Victoria's water and electricity are a must-protect, not a bargaining chip. Trust is earned at the meter, not in the press release.

Energy Surplus to the community, free

More power in than it takes out

Every data centre must bring enough new-build renewable generation and storage to cover 125% of its maximum possible draw — not its average, its absolute peak, plus a quarter again — before it switches on, so it never leans on the grid households rely on. That means there is always more power than the servers can ever use, and every spare megawatt is handed to the local community free of charge, flowing into the homes, schools and streets around it.

Why it matters — A data centre should make its neighbourhood's power cheaper and more reliable, never scarcer. When the servers idle, the town gets the benefit — not the operator's balance sheet.

People A human, accountable, always

The Humans First Guarantee

No Victorian government decision that affects a person's rights, payments or liberty may be made by AI alone. Every automated system that touches the public gets a named accountable human, a plain-English explanation, and a fast, free right to human review. Social scoring is banned from government procurement outright.

Why it matters — Automation should take the drudgery out of government — never the responsibility. When the computer says no, a Victorian can always ask a person why.

Capability Built here, benefiting here

Sovereign skills and public compute

The reserved compute — including the free 10% share for government, schools, TAFEs and universities — feeds a public-interest allocation for Victorian research, public services and startups. Government procurement weights Australian-owned AI firms, sensitive Victorian public data stays onshore, and TAFE-led programs train the electricians, technicians and engineers the build-out actually employs.

Why it matters — Owning capability beats renting it. A state that can build, train and run its own systems negotiates from strength — and keeps the high-wage jobs at home.

Integrity Every system, on the record

The public AI register

Every AI system used by the Victorian government goes on a public register with its purpose, its accountable owner and its audit history. Independent audits, mandatory incident reporting, and full whistleblower protection for the workers who speak up when systems fail people.

Why it matters — We were founded to keep the powerful honest. That job doesn't stop when the powerful start using algorithms.

Security No surveillance. No atrocities. Ever.

Hard red lines on what runs here

A Compact licence prohibits Victorian data centres from knowingly hosting or powering workloads that drive illegal mass surveillance, enable foreign atrocities or human-rights abuses, or pose a risk to Australia's national security or sovereignty. Operators must vet high-risk customers and attest to what runs on their racks, cooperate with Australian security agencies, and cut off prohibited workloads the moment they're put on notice — with the same penalty ladder as the Water Truth rule: directors personally liable, licence gone.

Why it matters — Our land, our water and our power will never underwrite someone else's police state or war crimes. Sovereignty means deciding not just who profits from our infrastructure — but what it is allowed to do.

Advanced liquid-cooled data-centre hall
Best-available cooling — audited at the meter, not the press release.
A Victorian community sharing in the dividend
Host suburbs share the benefit, every year.
Australian researchers using reserved compute
One rack in two works for Australians.

04 · The deal

The data-centre deal, on one page

Under the Compact, hosting digital infrastructure becomes a straight, published exchange — and it is deliberately lopsided in Victoria's favour. No secret incentives, no hollow 'investment' announcements: a ledger any Victorian can read.

What Victoria gets back

11 binding guarantees
  • 50% of compute reserved for Australian users at fair, regulated rates — 10% of capacity free for government, schools and universities
  • Local-hire targets and 1-in-10 apprentices from the host region
  • A guaranteed ongoing workforce — permanent local operations jobs for the life of the facility, not just the build
  • Mandatory community engagement — funded outreach programs supporting local schools, TAFEs and community groups
  • A life-of-facility Community Dividend — automatic bill credits for every host-area household, plus a locally governed benefit fund
  • 125% of peak power draw built as new renewables — more than the servers can ever use, the surplus handed to the community free of charge
  • Best-available cooling, independently metered water and power budgets, heat-reuse plans
  • Zero toxic discharge — anything returned to our water is treated, tested and published
  • New water infrastructure funded by the operator before any extra draw — households and farmers never left short
  • Quarterly public reporting audited at the meter — lie about water or power use, lose the licence
  • Hard red lines — nothing hosted here may drive illegal mass surveillance, foreign atrocities or threats to our national security or sovereignty

05 · The path

How we get there

  1. First 100 days

    Draw the line

    Introduce the Victorian AI Compact Bill: the Compute Reservation, the Community Benefit Licence and the public AI register. Pause approvals for any new hyperscale facility that hasn't signed on.

  2. Year one

    Set the standards

    Stand up the independent regulator that sets the dividend rate, the cooling, water and power benchmarks, the zero-toxic-discharge standard, the metering-and-audit regime that keeps operators honest, and the fair-rate rules for reserved compute. Publish the government AI register — every system, in the open.

  3. Year two and beyond

    Build on our terms

    First Compact-certified data centres open: locally staffed, dividend-paying, best-in-class cooled — with one rack in two working for Australians. TAFE pipelines running. Victoria becomes the model other states copy.

We will treat artificial intelligence the way our party has treated every powerful force for nearly fifty years: welcome what serves people, regulate what threatens them, and never, ever take the operators' word for it.

06 · Your move

This policy is a draft — you can change it.

Like every Democrats policy, the Victorian AI Compact is built by contribution. Members bring the evidence, the arguments and the lived experience — engineers, farmers, teachers, neighbours of the next build — and the policy gets sharper with every voice added. Bring yours: join, and help write the rules the intelligence age will live by.