Australia faces risk of losing AI investment to regional rivals

Australia faces the risk of losing artificial intelligence investment to regional competitors such as Malaysia, Singapore, Japan, and India if it fails to provide sufficient data centre capacity and energy supply. Belinda Dennett, chief executive of Data Centres Australia, warned that delays in infrastructure and approval processes could drive hyperscalers away despite Australia’s natural advantages in land, political stability, and renewable energy potential.

AirTrunk, the country’s largest data centre operator, has called for increased transparency from state energy grid authorities regarding infrastructure upgrades. The company expressed a desire to avoid funding costs for grid improvements that would otherwise be necessary for general service.

In a related local context, Angela Armstrong, a mayoral candidate in Northern Tasmania and critic of planned Firmus data centres, has been working for the AI data company Mercor. Armstrong, who is training large language models on Australian law, stated that her direct involvement in the industry allows her to be a more credible critic of how these systems are built and regulated.