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

Oleh_Slobodeniuk/Getty Images 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.