The office of New South Wales' technology minister quietly rephrased its enthusiastic response to OpenAI's establishment of a Sydney office after staff members humorously noted the potential for a dystopian future reminiscent of Skynet.
OpenAI, a prominent name in artificial intelligence, initially unveiled plans to open its Australian office in August of last year, subsequently launching the location in December.
Recent emails released in the NSW parliament, shared with Guardian Australia, show discussions among staff in technology minister Anoulack Chanthivong's office regarding the language used in a press statement about OpenAI's new venture. The original wording included the phrase "absolutely thrilled" about the announcement. However, this was later changed to a more subdued "welcomes the news."
The deputy chief of staff responded humorously, suggesting that he might use "golden era" in future comments. A colleague chimed in with a joke, expressing concern about a potential "Skynet scenario" within the next five years and the desire to avoid sounding overly optimistic.
In the context of the Terminator film franchise, Skynet represents a fictitious AI that becomes self-aware and leads to catastrophic consequences for humanity.
Despite the staff's cautious approach, it's evident that members of the NSW government were actively seeking to champion OpenAI's investment in the region prior to its office opening. During a meeting in June last year, Chanthivong and OpenAI discussed Sydney's position as a premier startup hub, claiming it attracts 65% of Australia’s venture capital and is home to major tech firms like Atlassian, Canva, and Afterpay.
The minister was also encouraged to highlight that several leading American tech giants, including Google, Microsoft, Meta, AWS, and IBM, have established Australian headquarters in Sydney. A key message emphasized that NSW represents a significant hub for artificial intelligence, being home to 45% of the nation's AI businesses.
Responding to inquiries, a spokesperson for the NSW government affirmed its commitment to harnessing AI's potential while ensuring responsible implementation that benefits the public.
The state is formulating a strategy for the development of datacentres to bolster the expanding AI industry, although a timeline for this release is yet to be disclosed.
In a recent inquiry about datacentres, Environment Minister Penny Sharpe expressed confidence in Sydney's attractiveness for investment compared to Victoria and South Australia.
The state and federal governments are navigating the push for AI advancement alongside rising community apprehensions surrounding the environmental effects of datacentres. These facilities typically resort to diesel generators during power outages. Documents from a May 2026 meeting suggested that simultaneous operation of eight large datacentres within Sydney could lead to an air pollution spike significantly exceeding that of all electricity generation and vehicle emissions in the area.
“Cumulative impacts are critical,” the report noted, indicating that during power failures, multiple datacentres might activate their generators simultaneously.
Belinda Dennett, chief executive of Data Centres Australia, clarified that such scenarios represented worst-case projections and would be exceptionally uncommon. She emphasized that backup generators are primarily reserved for brief testing and emergency situations, with emissions already monitored against the EPA's air quality standards.
Abigail Boyd, the chair of the NSW datacentres inquiry and a member of the Greens party, stated that existing air impact assessments are inadequate as they fail to accurately account for operational hours. She warned that the energy demand from datacentres could strain the grid and heighten the risk of blackouts.
“There is a real possibility that the demand from datacentres could push regular consumers out of the energy network, compelling these facilities to rely on diesel generators instead,” she remarked, highlighting the dangers of these projects being located near densely populated areas and schools.
