The federal government has announced a $7 billion boost to Australia’s AI ecosystem.
The funding is part of the government’s recently announced National AI Plan. The government has signed an MoU with Australian firm NEXTDC to develop a local AI infrastructure partnership.
This partnership will see a $7 billion next-generation data centre built at NEXTDC’s S7 site in Eastern Creek, Sydney.
S7 is expected to deliver thousands of direct and indirect jobs over the course of its construction, as well as ongoing technical, manufacturing, engineering and operational roles.
Federal Treasurer, Jim Chalmers, said this project has a sustainable design – with energy to be provided by long-term power purchase agreements for new renewable energy sources (wind, solar and/or batteries) and next generation features not requiring ongoing potable drinking water for cooling operations.
Alongside the OpenAI and NEXTDC MoU, OpenAI is partnering with local Australian businesses including Coles, Wesfarmers, Commonwealth Bank and the NRL to launch a series of skills training initiatives for workers, small businesses and not-for-profits.
A new Founder program with Australian venture capital and accelerators will provide support for local startups and innovators.
"Partnerships like these will help create good jobs, boost skills, and spread AI adoption across our economy,” Chalmers said.
Building competency
The National AI Plan is backed by a $29.9 million commitment to establish the AI Safety Institute in early 2026 to ensure that the government is monitoring and responding to risks, supporting agencies and regulators.
Minister for Industry and Innovation, Tim Ayres, said the Future Skills Organisation is ensuring the skills and training system is responsive to the digital and AI skills needs of the future. “They are developing generalist and specialist digital and AI units of competency across Australian Qualifications Framework levels,” he said. Plan is available at https://www.industry.gov.au/NationalAIPlan