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The fight over AI data centres is becoming Australia’s next Indigenous policy challenge

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In July 2026, more than 200 community members gathered at Mandoon Bilya (Helena River) in Perth’s eastern suburbs. They planted more than 3,000 native flora as part of a wetland restoration project. The hopeful scene was a stark contrast to what the river might have become.

Until recently, Mandoon Bilya was the proposed site of a hyperscale artificial intelligence (AI) data centre. It was scheduled to be one of Australia’s biggest. Aboriginal groups, environmental activists and local community groups successfully opposed the development.

Instead of a 120-megawatt AI facility, the area is now focused on ecological restoration and protecting Country. Community groups are working to realise new visions of the river’s future.

Yet the Mandoon Bilya opposition is about more than one defeated development proposal. As AI drives demand for new facilities, data centres are expected to proliferate across Australia.

The campaign highlights an urgent policy challenge. Policymakers have focused on regulating AI technologies. Yet Aboriginal communities have had little say in AI infrastructure planning.

This includes participating in decisions about the resources and infrastructure on which AI technologies depend. Decisions made now could shape Indigenous relations with the government around AI for years to come.

The case of Mandoon Bilya

Restoration work at Mandoon Bilya follows a hard-fought campaign. It was led by the Bibbul Ngarma Aboriginal Association and supported by environmental and community........

© The Conversation