Australia’s largest data centre operators have broadly endorsed the federal government’s new expectations framework for digital infrastructure, signalling alignment between policymakers and industry as the country positions itself for the next phase of AI-driven growth. Executives from AirTrunk, CDC Data Centres and Equinix have all welcomed the government’s move to define how data centres should contribute to national priorities, including energy transition, water use, skills development and sovereign capability.
The framework, released this week, stops short of formal regulation but will be used to prioritise projects through Commonwealth processes, effectively shaping which developments proceed most quickly. It marks a shift toward a more outcomes-based approach to infrastructure investment, with “social licence” emerging as a central concept.
For Robin Khuda, founder and CEO of AirTrunk, the expectations formalise a direction the sector has already been moving toward. “This week’s release…is an important step toward building the digital infrastructure Australia needs for the AI era,” he wrote on LinkedIn, adding that the industry must be “singularly focused” on the contribution it makes to the economy and communities.
Khuda framed the policy as an opportunity for the sector to demonstrate leadership, particularly if it wants to benefit from faster planning and approvals. “If we want progress…we need to earn confidence through the way we build, the way we use resources, and the way we work with communities,” he said.
AirTrunk outlined four focus areas in response: delivering critical digital infrastructure, operating responsibly with respect to energy and water, supporting local communities, and investing in long-term social impact. The company pointed to initiatives such as shared grid infrastructure and battery storage in Western Sydney as examples of how operators can expand capacity without shifting costs onto consumers.
Established practice
Similarly, CDC Data Centres said the government’s expectations largely reflect established industry practice rather than a step change in requirements. The company noted that security, energy efficiency, water stewardship and workforce development have been embedded in its operations “from day one”.
CDC said clear, nationally consistent expectations would help provide investment certainty and ensure Australia remains competitive in attracting large-scale digital infrastructure. It added that purpose-built facilities are essential to enabling AI at scale, particularly as demand for advanced compute accelerates.
Important step
Equinix, through Australia managing director Guy Danskine, also welcomed the framework, describing it as “an important step” in ensuring sustainable and locally beneficial growth of the digital economy.
Danskine highlighted alignment with the company’s global strategy, including its commitment to 100% renewable energy coverage by 2030 and existing investments in renewable procurement in Australia. “We support approaches that accelerate additional renewable capacity, enhance grid resilience and ensure infrastructure investment is delivered in a way that does not place undue cost on consumers,” he said.
On water, Equinix pointed to its use of recycled and non-potable sources, as well as ongoing investments in efficiency technologies such as liquid cooling. The company also backed the government’s focus on enabling access to infrastructure for startups and researchers, positioning this as critical to supporting Australia’s broader innovation ecosystem.
Across the sector, there is broad agreement that the government’s expectations provide a constructive baseline and largely codify practices already adopted by leading operators, rather than imposing fundamentally new obligations.
Execution is key
However, NextDC chief executive Craig Scroggie offered a more cautionary perspective in a LinkedIn post, while still broadly aligning with the direction of policy. Scroggie said much of the framework reflects what the industry already does, but warned that the key issue is not compliance, but execution.
He characterised the current moment as a critical window for Australia to capture a share of what he described as the largest industrial build-out in modern history, driven by AI and digital infrastructure investment. In that context, he argued that policy settings must prioritise delivery speed and certainty. “Expectations that influence approvals without defined thresholds introduce uncertainty into project delivery. That uncertainty will be read by global investors,” he said.
Scroggie also drew a distinction between traditional data centres and emerging “AI factories”, describing the latter as a new industrial asset class tied to large-scale production of intelligence. “This is not a data centre policy question. It is an industrial policy decision for the AI economy,” he claimed.
While not opposing the framework itself, he cautioned that ambiguity and fragmented execution across energy, land and approvals could redirect investment elsewhere. “Capital flows to speed and certainty. Ambiguity does not slow investment, it moves it,” he said.
At the same time, Scroggie’s comments reinforce a broader point made across the industry: that AI infrastructure is increasingly intertwined with energy systems and national economic strategy.
Broad alignment
Taken together, the data centre industry responses suggest broad alignment on the need for clear expectations and stronger coordination, alongside a shared recognition that implementation and delivery will be critical to maintaining Australia’s competitiveness.
The convergence between government and industry positions Australia differently from jurisdictions where tensions between policymakers and operators have escalated – at least for now. The focus will now turn to how effectively these expectations translate into timely, coordinated delivery across energy, land and approvals.