While concrete federal intervention around Australia’s AI infrastructure remains absent, the private sector is not hanging around. ResetData, an Australian cloud services provider backed by Centuria Capital Group, has stepped up to launch what it describes as the country’s first sovereign public AI factory (AI-F1) and AI Marketplace. The Melbourne CBD facility, scheduled to begin operations in Q2 2025, features high-density Nvidia H200 GPU clusters and liquid cooling technology that the company reckons will deliver 40% lower costs, 45% fewer emissions and zero wastewater compared to traditional data centres.
Speaking to W.Media about the urgent need for sovereign AI capability, ResetData CTO Karl Kloppenborg doesn’t mince words about the strategic imperative facing Australia. He does however frame the country’s challenge in terms of competitive opportunity rather than defensive necessity. “Australia faces a strategic opportunity to lead in AI infrastructure,” Kloppenborg says. “While countries like South Korea, Japan and EU members have committed to national compute facilities, Australia needs to leverage private enterprise to build purpose-built AI factories.”
His perspective reflects a pragmatic acceptance of Australia’s current federal policy focus on AI regulation over infrastructure. For Kloppenborg, the country’s status as a services economy makes AI infrastructure not just desirable but essential for regional competitiveness. “As a services economy, we need an AI-enabled workforce to compete in APAC,” he explains. “ResetData is demonstrating that home-grown capabilities can be scaled to deliver the infrastructure Australia needs and this is why we are launching Australia’s first Nvidia supercomputer next month.”
From regulation to infrastructure
Kloppenborg wants the federal government to do more to develop sovereign AI. While Australia has focused heavily on regulatory frameworks and ethical guidelines, he argues this approach fundamentally misses the point without corresponding infrastructure investment. “Policy-making isn’t industry-building,” he states. “While we applaud both federal and NSW governments for initiating growth projects, it’s not enough to rely on foreign-owned hyperscalers like AWS and Microsoft.”
This critique echoes Dr Sue Keay’s recent warning that “we are trying to regulate things over which we have no control”. Kloppenborg’s solution is direct: the government must move beyond regulation to active infrastructure development. “Government should lead on funding, building ecosystems, securing infrastructure, and incubating homegrown talent,” he argues. “For maximum ROI, we need liquid-cooled infrastructure for the latest AI chips – offering considerable cost reductions and lower emissions. Home-grown infrastructure also better complies with the Security of Critical Infrastructure Act (SOCI).”
Multiplier effect of investment
Where Dr Keay emphasises the risks of inaction, Kloppenborg focuses on the opportunities that proper investment can unlock. “AI is already transforming how people live, work and play globally,” he says. “Underinvestment threatens our international competitiveness. Government support creates a multiplier effect – universities achieve more, startups explode, and businesses gain competitive advantage.”
This multiplier effect is already visible in ResetData’s approach. The company’s AI Marketplace will offer live Nvidia-certified AI models for immediate deployment across accounting, legal, retail, technology and engineering sectors. By democratising access to AI capabilities, ResetData believes it can create the conditions for widespread adoption and innovation when it launches its Nvidia-based supercomputer in the coming weeks.
Redefining critical infrastructure
Kloppenborg takes a holistic view around whether sovereign AI capability should be considered critical infrastructure – a question that goes to the heart of Australia’s strategic planning. “AI should be viewed as an ecosystem,” he says. “We need Australian neoclouds, AI factories and AI marketplaces for AI solutions that serve our interests. Many data centres claim to be ‘AI-ready’ but are built for traditional workloads, not AI workloads – which are very different.”
This distinction between AI-ready and AI-optimised infrastructure is crucial. Traditional data centres were designed for different computational patterns and cooling requirements. AI workloads demand specialised architecture, from liquid cooling systems to high-density GPU clusters. “ResetData AI factories bring these capabilities onshore and on-demand, with Nvidia certification for true AI readiness,” he says.
Scale or hyperscale?
Despite ResetData’s efforts, Kloppenborg acknowledges the fundamental challenge facing any private sector solution: competing with hyperscale cloud providers without government backing. “Australian neoclouds like ResetData can provide specialised AI Factories, but scaling to compete with hyperscalers is challenging without government support for funding or offtake,” he admits.
“ResetData has built Australia’s first sovereign, publicly available AI Factory…with plans for national rollout,” he says. “These facilities create significant employment and AI adoption opportunities.”
When asked about international AI infrastructure lessons for Australia, Kloppenborg said it comes to two words: “urgency and scale”.
He points to Europe’s AI infrastructure plans as a model for the kind of thinking Australia needs to adopt. “Europe is targeting a €1.2 trillion boost with AI capabilities, with…investment already underway.” In the meantime, Australia continues to rely on market forces and state-level initiatives. “Australia needs to think big and act on the basis there’s a race for competitive advantage,” Kloppenborg argues. “Now is the time for action to define our own future – starting with sovereign capability.”
Kloppenborg’s call for government backing isn’t about replacing private enterprise but amplifying its impact. “Government investment in sovereign AI businesses can fast-track our local and international competitiveness,” he concludes.
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