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The crucial area where Australia is falling behind in the AI race

The crucial area where Australia is falling behind in the AI race

We need “AI factories” that can run advanced artificial intelligence models to transform raw data into valuable predictions, analysis, automation, drug discoveries and more.

An AI compute centre in the Docklands area of London. Australia lags behind in this crucial infrastructure, putting us at a disadvantage.  Bloomberg

Amazon Web Services recently announced a $20 billion investment in Australia’s cloud infrastructure, including 170 megawatts of new solar generation capacity.

On the surface, this is excellent news for Australia’s digital landscape. But dig deeper, and it becomes clear that this investment, while good, is not great. It addresses cloud storage but overlooks a crucial gap: Australia desperately needs substantial investment in AI compute infrastructure, where raw data is transformed into valuable information, not just more cloud storage infrastructure. This may not be possible without nuclear energy.

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Constantine Frantzeskos
Constantine FrantzeskosDigital marketing strategistConstantine Frantzeskos is a marketing and digital strategist

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Original URL: https://www.afr.com/companies/infrastructure/the-crucial-area-where-australia-is-falling-behind-in-the-ai-race-20250630-p5mb9x