Data centres Australia

In late November, a new industry body launched in Australia representing the interests of data centre developers and operators, reflecting Australia’s continued effort to address the growing role of AI and other rapidly advancing technologies in Australia. Data Centres Australia’s (DCA) formation comes at a critical time as data centres provide an economic and technological opportunity for Australia. It is a rapidly growing industrial sector, producing $12.6 billion of gross-value-added per terawatt hour, considerably higher than mining or agriculture.[1] In 2024, Australia saw the second largest investment in data centres in the world, at around $10.1 billion.[2]

Whether the growth of data centres as an emerging industry and key investment opportunity in Australia continues, remains to be seen. Macquarie Group, one of Australia’s leading infrastructure investors has recently exited its data centre investments, signalling a question as to the desirability of data centre assets.[3] This is something that the DCA is sure to address. 

DCA publicly represents the data centre sector. Current DCA members include Microsoft, NEXTDC, Nokia, Schneider Electric, Stack Infrastructure, TikTok, AirTrunk, Amazon Web Services, CDC Data Centres, Equinix and Goodman. DCA envisions Australia as a principal gateway for investment in AI infrastructure and sustainable development. 

The National AI Plan, published by the Australian Government on 2 December 2025, outlined its goal to capture these opportunities by cultivating investment in digital and physical infrastructure, including data centres. The National AI Plan highlighted that between 2023 and 2025, companies announced plans to invest in Australian data centres that could total more than $100 billion. See our article here for more information on the National AI Plan.

Notwithstanding the critical role data centres play in Australia’s technological advancement and economic development, the sector faces significant challenges relating to energy infrastructure. For example, AirTrunk, Australia’s largest data centre owner, was only guaranteed 75% of the power required to operate a hyperscale facility in Sydney’s north-west.[4] Data centres typically have an energy consumption rate five to 10 times higher than the average office building. They are expected to account for 6% of national energy consumption by 2030. Our article on the global challenges and opportunities facing data centres can be found here.

DCA seeks to provide coordinated industry advocacy and practical solutions for these issues, noting it supports the sustainable and effective expansion of data centres in Australia. As the sector continues to grow, DCA’s role in facilitating collaboration between industry, government and stakeholders will be crucial to ensuring Australia fully realises the strategic opportunities of data centres.