Tech companies fight to convince Aussies of benefits

Australian data centre companies are urging the nation to develop its own artificial intelligence capacity immediately, fearing reliance on overseas tech could drain domestic capabilities. A government inquiry into AI heard from industry leaders about the importance of domestic expansion and control. ResetData, an AI infrastructure firm, argued that Australia must retain local infrastructure, skills and operational capacity to run critical workloads under Australian ownership.

They warned that creating this capability quickly is impossible once it becomes urgent. Meanwhile, data centre firms like Macquarie Technology urged Australia to invest in locally-owned centres, emphasizing that physical location alone does not ensure sovereign control. The inquiry will also examine AI safety firms, data vendors and the challenges they face in increasing sovereign capacity.

Some states like Victoria have restricted data centre development in residential areas, while others, like NSW, have seen successful community campaigns against proposed centres near schools. The stakes are high as companies race to boost Australian AI capability despite potential personal inconvenience. Firmus, a leading AI company, recently parted ways with a partner due to differing views on national growth, and is set to go public later this year with a value of around $44 billion.