Australia’s next generation of data centres may not be built in Sydney, Melbourne, or Brisbane. Instead, many of the industry’s most ambitious projects are expected to emerge in regional locations, where access to power, land, and connectivity is creating new opportunities for large-scale development. Yet while the opportunity is enormous, so too are the challenges.
Industry expert, Head of Legrand Data Centre Solutions Brendan Dessent, told W.Media that the biggest constraint may not be technology or capital. It could, in fact, be people.
A workforce challenge unlike any before
The Australian data centre sector is entering a period of unprecedented growth. “Data centre operators and contractors are competing for the same pool of skilled electricians, mechanical tradespeople, and technical specialists needed across housing, transport, healthcare and other infrastructure projects,” said Dessent. “The elephant in the room is staff.”
The challenge becomes even greater when developments move beyond major metropolitan centres. Recent proposals for large-scale data centres in regional areas have sparked broader conversations about accommodation shortages, workforce mobility, and how communities can support temporary construction populations. One example involves a coastal project considering cruise ships as temporary accommodation for workers, highlighting the unconventional solutions that may be required as projects move into less populated areas.
Regional Australia’s opportunity
Despite the challenges, many see that there are significant benefits for regional communities. Areas historically associated with power generation and heavy industry could become attractive locations for future digital infrastructure developments. Communities that have experienced population decline or economic transition may find new opportunities in data centre construction and operation.
The discussion highlighted Victorias Latrobe Valley as an example of a region with a long history of supporting electricity infrastructure, suggesting that future developments could help stimulate renewed investment in regional centres. New transport links, airport upgrades, and supporting infrastructure may also emerge as data centre investment expands into regional areas.
Modular construction becomes essential
To make regional developments viable, the industry is expected to rely heavily on prefabrication and modular construction. Switchrooms, electrical assemblies, and other major infrastructure elements can be manufactured in metropolitan centres before being transported and installed on site, reducing labour requirements in remote locations.
This approach mirrors strategies long employed by Australia’s mining sector, which has decades of experience delivering large-scale infrastructure projects in remote environments.
According to Dessent, the data centre sector has much to learn from mining when it comes to modularisation, logistics, and workforce deployment.
Australia punches above its weight
“The enthusiasm surrounding Australian data centre investment is being driven by more than domestic demand,” he said. “Australia’s geopolitical stability, strong connectivity, and proximity to major population centres across Asia are making it an increasingly attractive destination for hyperscale investment…Perth, in particular, is a location with significant long-term potential due to its alignment with Asian time zones and proximity to a substantial portion of the world’s population,” said Dessent.
The result is an industry that many believe is still only at the beginning of its growth cycle.
Dessent also noted that planned regional developments measuring hundreds of megawatts have yet to be fully realised, suggesting the sector’s most ambitious expansion phase still lie ahead.
Building Australia’s digital future
For all the attention focused on artificial intelligence, cloud computing, and digital transformation, the conversation ultimately comes back to infrastructure. Australia’s data centres are creating jobs, attracting investment, and driving construction activity at a scale few predicted a decade ago. The next chapter will depend on whether the industry can solve its workforce and regional delivery challenges.
If it can, data centres may prove to be more than digital infrastructure. They could become a catalyst for the revitalisation of regional Australia itself.
This article, the first of two, is based on a W.Media interview with Brendan Dessent at the Sydney Cloud & Datacenter Convention 2026 in September. Listen to the full podcast.