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TECHNOLOGY · SEP 21, 2026

Telstra Pushes for Australian AI Data Centre Expansion

Telstra is advocating for more AI data centres in Australia, leveraging the nation's renewable energy and water resources to compete with the United States.

Telstra is advocating for the expansion of artificial intelligence data centres across Australia, arguing that the country's combined availability of water and renewable energy provides a natural competitive advantage over the United States. The telecommunications company aims to support this growth through its subsea cable assets and the Aura Network, a terrestrial fibre network connecting major capital cities. Telstra has already established partnerships with Microsoft, Google, Amazon Web Services, and Firmus.

This industry push is marked by massive investments and local friction. Anthropic recently signed a lease for a $32 billion development in Queensland's Western Downs, which received a federal exemption to utilize gas for initial power. Conversely, a proposed $1.47 billion facility in Spotswood, Melbourne, is facing active campaigns from local residents.

Internally, Telstra is deploying AI agents via Salesforce's Agentforce to automate security permissions and customer refunds. These automation efforts coincide with a workforce reduction of 1,219 roles over the past year.


Reported across 6 outlets
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