A robot hand reaches out to the letters AI (Artificial Intelligence) in an image taken at an undisclosed location on June 23, 2023. Dado Ruvic/Reuters
Deputy Prime Minister Richard Marles has flagged remote areas of Australia as potential sites for new artificial intelligence (AI) data centres as the government seeks to attract investment from major U.S. technology companies.
Speaking after meetings with U.S. technology firms in San Francisco and officials in Washington, Marles said locating data centres away from highly populated areas would be important to securing community support.
Marles and Assistant Minister Andrew Charlton met with a number of American tech companies and frontier AI labs to discuss potential investment in Australian data centres and AI training infrastructure.
Marles emphasised the importance of securing a “social license” before constructing new data centres.
“Making sure that they are in appropriate places and not in highly populated areas, but also making sure that those data centres come with appropriate power,” he said.
Related Stories
He said the development of AI infrastructure was moving quickly and that decisions would need to be made within months rather than years.
“This is moving really quickly,” he said. “This is not measured over the course of the next few years. It’s really measured over the course of the next few months.”
Marles also said AI represented one of the most significant sovereignty opportunities for Australia since World War II.
“This is a really important opportunity for the country economically but it’s a really important opportunity for the country in terms of our national security, frankly, in terms of our sovereignty,” he said.
“I think this is as significant a sovereignty moment as our country has faced since the end of the Second World War.”
During his U.S. visit, Marles also met with the Secretary of War Pete Hegseth and U.S. Vice President J.D. Vance.
$150 Billion AI Data Centre Potential in Australia
The pitch for more AI investment in Australia comes as the nation’s biggest bank predicted the economic upside for data centres could be worth $150 billion.
“Access to electricity, water, grid connections and suitable sites will help determine which projects proceed and where new hubs emerge.”
The Australian government has also set out expectations for companies developing data centres and AI infrastructure, including requirements around national security, energy use, and water sovereignty.
The strategy says new infrastructure should also support Australia’s energy transition, meaning they are not meant to put pressure on energy prices. Further, they are meant to minimise water use and engage with Aboriginal Australians.
