Australia’s AI Edge Depends on Clean Energy and Strategic Action

Australia aims to become a global leader in artificial intelligence by developing world-class infrastructure powered by its abundant renewable energy. However, staying ahead of regional competitors will require fast decision-making, smart investment and a unified national strategy.

At present, Australia is in a strong position to lead the AI revolution due to its clean energy capacity, experience in the tech sector and ties across the Asia-Pacific. Regional competitors such as South Korea, Singapore and India have already taken early steps, with national AI strategies in place since 2019. India’s AI market alone could exceed $30 billion by 2027, which increases the urgency for Australia to act or risk falling behind.

The main challenge lies in infrastructure and energy demands. Modern AI data centres, especially those designed for generative AI, consume significant amounts of electricity and require extensive cooling. Global forecasts estimate data centre energy use could almost double by 2030 to more than 1,000 terawatt hours. That would account for 8% of Australia’s total energy consumption. The increasing density of server hardware also pushes water and power usage higher, putting pressure on environmental resources and requiring deliberate long-term planning.

Australia must address six key areas to compete at the international level. These include land availability, energy supply, digital connectivity, high-performance computing, skilled talent and well-defined policy. Local industry leaders warn that AI workloads are growing faster than traditional infrastructure can handle. Countries that align investment, regulatory efforts and technological capability will be positioned to drive the next phase of economic development.

Australia also has the potential to become a source of AI infrastructure for the wider Asia-Pacific region. Many neighbouring nations lack adequate land, technical expertise or reliable energy to support their own AI ambitions. By investing in systems like subsea cables and GPU capacity, Australia could begin exporting AI computing power and develop a highly valuable export market. This would help shape the country’s long-term economic future.

Source: The Australian