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Announced today, many of Australia’s leading data centre companies have joined forces to launch a new peak body aimed at positioning the country as a global powerhouse in AI infrastructure and sustainable digital development.
Launched today by Assistant Minister for Science, Technology and Digital Economy Dr Andrew Charlton, Data Centres Australia aims to unify the sector and advocate for sustainable growth, streamlined planning and investment in critical AI infrastructure.
The new peak body counts AirTrunk, Amazon Web Services, CDC Data Centres, Microsoft, NEXTDC (ASX: NXT), Equinix, Goodman Group, Schneider Electric, STACK Infrastructure and TikTok as members.
“This is an extraordinary time with the world racing for strategic advantage in AI infrastructure. Australia has already produced several world-class data centre companies and captured the attention of the global AI ecosystem,” Data Centres Australia CEO Belinda Dennett said.
“The complexity and scale of AI infrastructure expansion is challenging the conventional ways that we facilitate development.
“This means that countries that bring government, industry and stakeholders into genuine alignment, and move together at speed, will lead this industrial transformation.”
Data Centres Australia will work with the government to address key challenges in areas such as planning and development, energy, water and workforce development.
At the same time it has launched, the not-for-profit has published a report, titled Data Centres as Enabling Infrastructure, which found that Australian data centres consume 3.9 terawatts of energy annually, or two per cent of the nation’s electricity use - a figure projected to rise to six per cent by 2030.
The report also revealed that data centres have invested $3.1 billion in grid infrastructure since 2020, with a further $7.2 billion forecast by 2030.
Local investment in data centres could reach $26 billion by the end of the decade, positioning Australia as a regional leader in digital infrastructure.
Data Centres Australia has launched following a two-year informal pilot between Sydney-based AirTrunk, Amazon Web Services, Canberra-based CDC Data Centres, Microsoft and Brisbane-based NEXTDC.
“In the AI era, digital infrastructure has become one of Australia’s most important economic enablers. AI and cloud are reshaping every sector, and the data centres behind them are critical national infrastructure underpinning security, productivity and future industry growth,” NEXTDC CEO and managing director Craig Scroggie said.
“Over the past two years, the G5 (AirTrunk, AWS, CDC, Microsoft and NEXTDC) have worked together in an alliance capacity to educate policymakers and stakeholders, building a clear understanding of the unique requirements Australia must meet to remain globally competitive.”
AirTrunk Chief Development Officer Paul Slaven added that data centres are central to Australia’s digital economy ambitions.
“We need to build greater understanding – across society, government and industry – of how data centres can be delivered at the scale and speed required, and responsibly.”
The body’s research shows that data centres have contributed $40 million to potable water pipeline upgrades, with further investment of $500 million to $1.1 billion expected to help reduce consumption by up to half by 2030.
Currently, around 70 per cent of energy use is offset through renewables, direct purchases, offsets or on-site generation.
“This research provides an important benchmark to show how data centres contribute to the economy, producing the highest economic output per unit of energy of any industrial sector,” Dennett said. “
“We’re hopeful that this research and ongoing work by Data Centres Australia can contribute to informed, evidence-based policy discussion and collaboration between all interested stakeholders.”
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