Research

The State of the Australian Digital Infrastructure

defaultno
Published Jul 30, 2025 in Cloud & Infrastructure Data Platforms & Strategy Type Edge Presentations Authors Bevan Slattery Matt Boon
Cloud & Infrastructure Edge Presentations

The State of the Australian Digital Infrastructure

Jul 30, 2025 | 3 mins

Bevan Slattery (Founder of Cloudscene, Superloop, Megaport, NEXTDC and Co-Founder PIPE Networks), reflects on cloud evolution. With organisations now needing 25% more compute power over the next two years, cloud is firmly embedded in enterprise strategy. Bevan underscores Australia’s challenge in global innovation, ranking 23rd, and raises the critical question of how to rewire the country’s digital infrastructure. His own work through Soda, including the SMAP subsea cable project (Sydney–Melbourne–Adelaide–Perth), aims to create a secure, high-capacity backbone, essential for supporting cloud, AI, and sovereign compute.

Bevan explains Australia’s opportunity to become a strategic digital hub in the Indo-Pacific, particularly as global tensions and shallow sea routes (like the South China Sea) risk cable security and repair. He stresses that digital sovereignty must be a collective effort, not left solely to government. Drawing on international experience, Bevan highlights the role of industry in building trusted infrastructure, noting that accidental or bureaucratic disruptions, like lengthy permitting delays, can be as damaging as geopolitical risks. Australia’s value lies in its stability, land availability, and deepwater access, which hyperscalers like Google and Meta are now recognising with major cable investments.

However, Bevan cautions that long-term digital transformation is being held back by short-termism in policy and investment. He calls for urgent reform to reduce regulatory burden, especially for infrastructure and energy projects. Rather than patching old systems, he urges bold investment in new energy sources to meet the rising demands of AI. His perspective is pragmatic: use renewables where viable, introduce gas as a transitional step, and plan now for nuclear as long-term baseload power. On workforce development, he advocates for immersive, project-based learning and stronger industry–university alignment, championing practical experience as the key to nurturing the next generation of infrastructure leaders.

 

Key Takeaways:

  • Australia must rewire its digital infrastructure to support growing cloud and AI demands, with projects like the SMAP subsea cable critical for secure, sovereign connectivity across the nation.
  • Geopolitical risk and regulatory inertia threaten Australia’s role as a stable digital hub in the Indo-Pacific; Bevan calls for streamlined permitting and stronger industry–government collaboration.
  • Bold energy and workforce strategies are essential, including renewables, transitional gas, future nuclear options, and hands-on learning pathways to equip the next generation of infrastructure talent.
ADAPT