Leading data centre operators welcome National AI Capability Plan, call for strong focus on digital infrastructure

Five of Australia's largest data centre operators have welcomed the announcement of a National AI Capability Plan, emphasising the importance of digital infrastructure as a foundation to realise the potential of Artificial Intelligence (AI).

AirTrunk, Amazon Web Services, CDC Data Centres, Microsoft, and NEXTDC recently commissioned research to highlight an anticipated $26 billion investment in local data centre capability over the next five years, to meet digital demand driven by internet-connected devices, cloud computing and AI.

"We welcome the government's plan to develop Australia's AI capabilities, to grow investment, drive innovation and build skills. We agree there is a huge opportunity for Australia to capitalise on AI and urge the government to ensure a strong focus on the key infrastructure required to realise that potential, including data centres and a reliable and sustainable energy supply for AI," the companies said.

Energy efficient data centres are an essential component of Australia's digital infrastructure, aggregating data processing and storage from across the economy, and the resources required to meet those needs. Data centres play a vital role in supporting AI.

A Mandala report produced for the group highlights the strategic importance of data centres as part of Australia's digital infrastructure, coming together with utility services, such as power, water and telecommunications to generate value through the delivery of digital services and applications. It recognised data centres as playing an important role in catalysing Australia's clean energy transition, while also enabling new employment opportunities.

"Australia has huge potential to capitalise on the AI opportunity - from business productivity to the development of new businesses and jobs through becoming a hub for AI activity. Digital infrastructure will be an essential component of that success and we welcome engagement with government to develop the opportunity."

The group has outlined three key recommendations for Australia to foster its digital infrastructure ecosystem by implementing the right policy settings and fostering collaboration between government and industry across planning and approvals, renewable energy and skills development.

The United States recently formed an AI Infrastructure Taskforce in recognition of the importance of data centres to its national AI ambition and the United Kingdom has recognised a need to fast track data centre development as a key step to modernising its economy.

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Tim Marshall, TM Advisory
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