Anthony Albanese and Microsoft’s $5bn plan to protect nation from cyber attacks out of Russia and China
Anthony Albanese has recruited Microsoft to help Australian security agencies thwart surging cyber threats emanating from state-sponsored hackers in China, Russia and Iran.
Anthony Albanese has recruited US tech giant Microsoft to help Australian security agencies thwart a rising “frequency and severity” in cyber threats emanating from state-sponsored hackers and criminal gangs in China, Russia, Eastern Europe, Iran and North Korea.
The Prime Minister will join Microsoft chiefs in Washington on Tuesday (AEDT) to announce that the firm will spend an extra $5bn over two years to expand its Australian cloud computing and artificial intelligence operations and run 29 data centres in Sydney, Canberra and Melbourne.
The move aligns Australia closer to the US, where tech companies have been drafted in by the Biden administration to support all levels of government in the fight against cyber attacks.
US President Joe Biden, who will host a state reception and dinner for Mr Albanese at the White House on Thursday (AEDT), endorsed closer ties with big US tech firms in his national cybersecurity strategy released in March.
The government’s seven-year Cyber Security Strategy, which will be released within weeks by Home Affairs Minister Clare O’Neil, is expected to lean heavily on private sector investment rather than commonwealth funding.
The urgency to strengthen and update cyber defences comes as China ramps up its industrial-scale, state-sponsored cyber operations targeting Western nations, including Australia.
Security experts say recruiting big tech firms to help operate cyber defences could increase their market power and negatively impact sovereign capability.
Ahead of travelling to Beijing next week for meetings with President Xi Jinping and Premier Li Qiang, Mr Albanese on Tuesday announced the $5bn investment boost alongside Microsoft president Brad Smith and Microsoft Australia-New Zealand boss Steven Worrall.
Mr Albanese said Microsoft would strengthen Cyber Shield arrangements with the Australian Signals Directorate, the cyber spy agency that operates the Australian Cyber Security Centre.
Australia’s updated cyber strategy is expected to address barriers holding back the 10-year, $9.9bn REDSPICE package allocated to the ASD by the Morrison government.
Mr Smith, who is also Microsoft’s vice-chair, said “this is our largest investment in Microsoft’s 40-year history in Australia and a testament to our commitment to the country’s growth and prosperity in the AI era”.
“We’re coupling this $5bn in computing capacity and capabilities with AI and engineering that will strengthen the nation’s cyber defence, including a deeper collaboration with the ASD,” he said.
Mr Albanese, who was greeted on arrival into Joint Base Andrews on Monday (AEDT) night by ambassador Kevin Rudd and US Ambassador to Australia Caroline Kennedy, will attend a wreath-laying ceremony at Arlington National Cemetery and open the new Australian embassy in Washington before his White House visit.
Speaking at Blair House, Mr Albanese said Australia and the US were committed to promoting democratic values throughout the Indo-Pacific. Ahead of his ninth meeting with Mr Biden since May last year, Mr Albanese said the strength of Australia’s relationship with the US meant it “provides stability, security and comfort with each other that comes from our common values”.
Mr Biden and senior officials will brief Mr Albanese on global events, including the Israel-Hamas conflict, China’s covert and overt actions in the Indo-Pacific and beyond, Russia’s ongoing war in Ukraine and tougher economic headwinds.
“Australia and the US are important partners. It will be a very important visit that comes at a turbulent time for the world. But the good thing about Australia in the US is the strength of the relationship means it provides that stability, that security and that comfort with each other that comes from our common values,” Mr Albanese said.
The Prime Minister, who in January met Microsoft founder Bill Gates at Kirribilli House, said Microsoft’s investment would prepare an extra 300,000 Australians for jobs of the future and help establish the nation as a world-leading digital economy.
“A priority for my government is to ensure all Australians benefit from economic growth. This means we need to provide the skills to enable Australians to succeed in the jobs of the future.
“A strong economy requires protection from cyber threats. I welcome Microsoft’s collaboration with the ASD to enhance cybersecurity for households and business.”
Microsoft said Cyber Shield would build on its longstanding partnership with the Australian government, supporting the exchange of cyber threat information and “better protection for Australian residents, businesses and government entities”.
The Microsoft-ASD Cyber Shield (MACS) will enhance the “government and Microsoft’s joint capability to identify, prevent and respond to cyber threats, which are growing in both frequency and severity”.
In 2021-22, ASD’s Cyber Watch Office received more than 76,000 cybercrime reports.
“MACS will include the evolution of national threat intelligence sharing capabilities, with a focus on detecting, analysing and defending against sophisticated nation-state cyber threats.”
ASD director-general Rachel Noble said the private-public sector collaboration “builds on ASD’s strong partnership with Microsoft and will turbocharge our collective capacity to protect Australians in cyber space”.
The Albanese government has identified the Cyber Shield as one of the “first steps we are taking as part of the 2023-2030 Cyber Security Strategy, to become a world-leading cyber secure and resilient nation by 2030”.
Mr Albanese’s week-long visit is focused on developing an alliance for the future, including boosting collaboration with US agencies and companies on cyber security, science and research, critical minerals, clean energy and defence investment.
The US President and Jill Biden will host Mr Albanese and partner Jodie Haydon for events at the White House on Wednesday and Thursday (AEDT).
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