A national effort is gaining momentum to position Australia as a top destination for artificial intelligence investment. Tech giants are lobbying for regulatory changes to make it easier to build new data centres and AI infrastructure. However, outdated approval processes and copyright restrictions are slowing progress.
Australia's data centre expansion is accelerating, driven by increasing global demand for AI capabilities. New government figures show investment in IT equipment, which is crucial for AI-ready infrastructure, has surged. Quarterly spending has doubled to $2.8 billion as of September. In response, major companies such as Microsoft, Amazon Web Services and TikTok are pushing for clearer laws around energy use, planning approvals and intellectual property rights.
To coordinate their efforts, 11 companies have formed a peak body named Data Centres Australia. This group intends to work closely with the government to speed up the approval process for next-generation facilities. However, delays averaging 16 to 18 months, compared to faster approvals in other countries, are discouraging international investment. Industry experts say quicker energy and water planning is essential, along with a regulatory system that is more efficient.
Australia is becoming more attractive as a regional technology hub. Factors such as available land, renewable energy resources and political stability are playing in its favour. Still, the rollout of supportive policies is critical. Ongoing legal challenges, particularly related to AI copyright rules, continue to be a barrier. The government remains committed to requiring tech companies to pay for access to training data, a policy that may deter potential investors.
