Atlassian co-founder Scott Farquhar has outlined a bold vision for Australia to become a leading data centre hub for South-East Asia, leveraging the country’s abundant renewable energy resources. Speaking at the National Press Club, Farquhar proposed that Australia could export “megawatts as megabytes,” potentially creating a $10 billion-plus opportunity for the nation.
Farquhar’s comments come amidst the challenges faced by his fellow Atlassian co-founder, Mike Cannon-Brookes, in advancing the Suncable project, which aims to transmit solar energy from the Northern Territory to Singapore. Farquhar, however, suggests a different strategy for exporting Australia’s green energy, emphasizing the growing demand for data centres in a region increasingly driven by artificial intelligence.
Australia’s Competitive Edge in Data Centres
Farquhar envisions Australia as the preferred location for data centres in South-East Asia, citing the region’s burgeoning appetite for data. “There are more users of ChatGPT in the combined Indonesia and Vietnam than there are in the United States,” he noted, highlighting the dynamic growth in Asia and the consequent demand for data storage solutions.
Australia’s unique advantages, according to Farquhar, include its access to clean energy, a stable rule of law, and cutting-edge technology. “In this increasing world of geopolitics, our access to cutting-edge chips at the behest of the United States is an advantage for us,” he stated.
“Abundant energy, clean energy, and the other one is a stable rule of law.”
Despite Australia’s relatively high labor costs, Farquhar argues that the country’s deep talent pool, low energy costs, and ability to scale with raw materials make it surprisingly cost-competitive for building and operating data centres. “I was honestly surprised at how competitive Australia is,” he admitted, calling for improved planning approvals to expedite energy and data centre projects.
Powering the Future with Renewable Energy
Farquhar’s vision aligns with the commitments of major data centre operators and cloud-computing providers to renewable energy. He argues that this could accelerate Australia’s clean energy rollout, with solar, wind, and batteries playing a pivotal role. “Nuclear might be here in 10 years, but it’s not going to be here anytime soon,” he remarked, urging the government to streamline approvals for renewable energy installations.
Farquhar also addressed regulatory changes needed to support the data centre industry’s expansion, criticizing Australia’s outdated copyright laws. “We are in a perverse situation where copyright holders aren’t seeing any more money, but we also don’t see the economic upside of training models in Australia,” he said.
Implications for Australia’s Energy Grid
Concerns have been raised about the potential strain on Australia’s energy grid due to the growing number of data centres. However, Farquhar believes that increased demand could stabilize and even reduce power costs. “As the grid gets larger, it becomes more stable,” he explained, suggesting that a more interconnected grid could be cheaper and more reliable.
“A grid that powers more data centres, additional to the electricity needs of the nation, is going to be more stable and cheaper.”
Farquhar’s speech also served as a call to embrace artificial intelligence, advocating for adaptation rather than fear. “Every major technological wave has created more jobs than it has displaced,” he reminded his audience, emphasizing the potential for human capital to remain relevant amidst technological advancements.
Looking Ahead: Opportunities and Challenges
As Farquhar prepares to present his arguments to the federal government at the Economic Reform Roundtable in Canberra, the potential for Australia to become a data centre powerhouse remains both a promising and challenging prospect. The country’s ability to harness its renewable energy resources, coupled with strategic regulatory reforms, could position it as a key player in the global data economy.
In conclusion, Farquhar’s vision for Australia as a major data centre hub underscores the transformative potential of renewable energy and technological innovation. As the nation navigates the complexities of energy policy and economic growth, the path forward will require collaboration between industry leaders, policymakers, and the broader community.
