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Australia is set to get more AI data centres. Local communities need to be more involved

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Data centres are the engines of the internet. These large, high-security facilities host racks of servers that store and process our digital data, 24 hours a day, seven days a week.

There are already more than 250 data centres across Australia. But there are set to be more, as the federal government’s plans for digital infrastructure expansion gains traction. We recently saw tech giant Amazon’s recent pledge to invest an additional A$20 billion in new data centres across Sydney and Melbourne, alongside the development of three solar farms in Victoria and Queensland to help power them.

The New South Wales government also recently launched a new authority to fast-track approvals for major infrastructure projects.

These developments will help cater to the surging demand for generative artificial intelligence (AI). They will also boost the national economy and increase Australia’s digital sovereignty – a global shift toward storing and managing data domestically under national laws.

But the everyday realities of communities living near these data centres aren’t as optimistic. And one key step toward mitigating these impacts is ensuring genuine community participation in shaping how Australia’s data-centre future is developed.

The sensory experience of data centres

Data centres are large, warehouse-like facilities. Their footprint typically ranges from 10,000 to 100,000 square metres. They are set on sites with backup generators and thousands of litres of stored diesel and enclosed by high-security fencing. Fluorescent lighting illuminates them every hour of the day.

A data centre can emanate temperatures of 35°C to 45°C. To prevent the servers from overheating, air conditioners are continuously humming. In water-cooled facilities, water pipes transport gigalitres of cool water through the data centre each day to absorb the heat produced.

Data centres can place substantial strain on the local energy grid and water supply.

In some places where many data centres have been built, such as Northern Virginia in the United States and Dublin in Ireland, communities have reported rising energy and water prices. They have also reported water shortages and the degradation of valued natural and historical sites.

They have also experienced economic impacts. While data centre construction generates high levels of employment, these facilities tend to employ a relatively small number of staff when they are operating.

These impacts have prompted some communities to push back against new data centre developments. Some communities have even filed lawsuits to halt proposed projects due to concerns about water security, environmental harm and heavy reliance on fossil fuels.

A unique opportunity

To date, communities in Australia have been buffered from the impacts of data centres. This is largely because Australia has outsourced most of its digital storage and processing needs (and associated impacts) to data centres overseas.

But this is now changing. As Australia rapidly expands its digital infrastructure, the question of who gets to shape its future becomes increasingly important.

To avoid amplifying the social inequities and environmental challenges of data centres, the tech industry and governments across Australia need to include the communities who will live alongside these crucial pieces of digital infrastructure.

This presents Australia with a unique opportunity to set the standard for creating a sustainable and inclusive digital future.

A path to authentic community participation

Current planning protocols for data centres limit community input. But there are three key steps data centre developers and governments can take to ensure individual developments – and the broader data centre industry – reflect the values, priorities and aspirations of local communities.

1. Developing critical awareness about data centres

People want a greater understanding of what data centres are, and how they will affect their everyday lives.

For example, what will data centres look, sound and feel like to live alongside? How will they affect access to drinking water during the next drought? Or water and energy prices during the peak of summer or winter?

Genuinely engaging with these questions is a crucial step toward empowering communities to take part in informed conversations about data centre developments in their neighbourhoods.

2. Involving communities early in the planning process

Data centres are often designed using generic templates, with minimal adaptation to local conditions or concerns. Yet each development site has a unique social and ecological context.

By involving communities early in the planning process, developers can access invaluable local knowledge about culturally significant sites, biodiversity corridors, water-sensitive areas and existing sustainability strategies that may be overlooked in state-level planning frameworks.

This kind of local insight can help tailor developments to reduce harm, enhance benefits, and ensure local priorities are not just heard, but built into the infrastructure itself.

3. Creating more inclusive visions of Australia’s data centre industry

Communities understand the importance of digital infrastructure and are generally supportive of equitable digital access. But they want to see the data centre industry grow in ways that acknowledges their everyday lives, values and priorities.

To create a more inclusive future, governments and industry can work with communities to broaden their “clean” visions of digital innovation and economic prosperity to include the “messy” realities, uncertainties and everyday aspirations of those living alongside data centre developments.

This approach will foster greater community trust and is essential for building more complex, human-centred visions of the tech industry’s future.



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Apply Now: $100,000 African AI Startup Training Program

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⇓ More from ICTworks


By Wayan Vota on July 8, 2025

Digital skills and technology solutions are more critical for African economies as they embrace digital transformation. Countries are positioning themselves as major tech hubs as the world goes virtual.

Sign Up Now for More Entrepreneurship Training Programs

Entrepreneurs need to master artificial intelligence and advanced AI solutions available today for business growth and development. AI skills are an important tool for promoting social and economic development, creating new jobs, and driving innovation.

MEST AI Startup Program

MEST AI Startup Program is a bold redesign of Meltwater Entrepreneurial School of Technology’s flagship Training Program. It is built to prepare West Africa’s most promising tech talents to build, launch, and scale world-class AI startups.

West Africa has world-class tech talent, and it’s time AI solutions built on the continent reach users everywhere.

The MEST AI Startup Program is a fully-funded, immersive experience hosted in Accra, Ghana. Over an intensive seven-month training phase, founders receive hands-on instruction, technical mentorship, and business coaching from companies such as OpenAI, Perplexity, and Google.

The top ventures then advance to a four-month incubation period, and startups have an opportunity to pitch for pre-seed investment of up to $100, 000 and join the MEST Portfolio.

Apply Now! Deadline is August 22, 2025

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Do you want to get startup investments for a technology business? Or learn how to win more contracts? Then please sign up now to get our email updates. We are constantly publishing new funding opportunities.

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Wayan Vota co-founded ICTworks. He also co-founded Technology Salon, MERL Tech, ICTforAg, ICT4Djobs, ICT4Drinks, JadedAid, Kurante, OLPC News and a few other things. Opinions expressed here are his own and do not reflect the position of his employer, any of its entities, or any ICTWorks sponsor.



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AI video becomes more convincing, rattling creative industry

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Gone are the days of six-fingered hands or distorted faces: AI-generated video is becoming increasingly convincing, attracting Hollywood, artists, and advertisers, while shaking the foundations of the creative industry.

To measure the progress of AI video, you need only look at Will Smith eating spaghetti. Since 2023, this unlikely sequence, entirely fabricated, has become a technological benchmark for the industry.

Two years ago, the actor appeared blurry, his eyes too far apart, his forehead exaggeratedly protruding, his movements jerky, and the spaghetti didn’t even reach his mouth.

The version published a few weeks ago by a user of Google’s Veo 3 platform showed no apparent flaws whatsoever.

“Every week, sometimes every day, a different one comes out that’s even more stunning than the next,” said Elizabeth Strickler, a professor at Georgia State University.

Between Luma Labs’ Dream Machine launched in June 2024, OpenAI’s Sora in December, Runway AI’s Gen-4 in March 2025, and Veo 3 in May, the sector has crossed several milestones in just a few months.

Runway has signed deals with Lionsgate studio and AMC Networks television group.

Lionsgate vice president Michael Burns told New York Magazine about the possibility of using artificial intelligence to generate animated, family-friendly versions from films like the “John Wick” or “Hunger Games” franchises, rather than creating entirely new projects.

“Some use it for storyboarding or previsualization,” steps that come before filming, “others for visual effects or inserts,” said Jamie Umpherson, Runway’s creative director.

Burns gave the example of a script for which Lionsgate has to decide whether to shoot a scene or not.

To help make that decision, they can now create a 10-second clip “with 10,000 soldiers in a snowstorm.”

That kind of pre-visualization would have cost millions before.

In October, the first AI feature film was released: “Where the Robots Grow” is an animated film without anything resembling live action footage.

For Alejandro Matamala Ortiz, Runway’s co-founder, an AI-generated feature film is not the end goal, but a way of demonstrating to a production team that “this is possible.”

Still, some see an opportunity.

In March, startup Staircase Studio made waves by announcing plans to produce seven to eight films per year using AI for less than $500,000 each, while ensuring it would rely on unionised professionals wherever possible.

“The market is there,” said Andrew White, co-founder of small production house Indie Studios.

People “don’t want to talk about how it’s made,” White pointed out. “That’s inside baseball. People want to enjoy the movie because of the movie.”

But White himself refuses to adopt the technology, considering that using AI would compromise his creative process.

Jamie Umpherson argues that AI allows creators to stick closer to their artistic vision than ever before, since it enables unlimited revisions, unlike the traditional system constrained by costs.

“I see resistance everywhere” to this movement, observed Georgia State’s Strickler.

This is particularly true among her students, who are concerned about AI’s massive energy and water consumption as well as the use of original works to train models, not to mention the social impact.

But refusing to accept the shift is “kind of like having a business without having the internet,” she said. “You can try for a little while.”

In 2023, the American actors’ union SAG-AFTRA secured concessions on the use of their image through AI.

Strickler sees AI diminishing Hollywood’s role as the arbiter of creation and taste, instead allowing more artists and creators to reach a significant audience.

Runway’s founders, who are as much trained artists as they are computer scientists, have gained an edge over their AI video rivals in film, television, and advertising.

But they’re already looking further ahead, considering expansion into augmented reality and virtual reality; for example creating a metaverse where films could be shot.

“The most exciting applications aren’t necessarily the ones that we have in mind,” said Umpherson. “The ultimate goal is to see what artists do with technology.”

Published – July 08, 2025 08:44 am IST



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Apple’s top AI executive Ruoming Pang leaves for Meta: Report

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Meta invested in Scale AI in a deal that valued the data-labeling startup at $29 billion and brought in its 28-year-old CEO Wang [File]
| Photo Credit: REUTERS

Apple’s top executive in charge of artificial intelligence models, Ruoming Pang, is leaving the company for Meta Platforms, Bloomberg News reported on Monday, citing people with knowledge of the matter.

Pang, manager in charge of the company’s Apple foundation models team, will join Meta’s new superintelligence team for a compensation package worth millions of dollars per year, the report added.

Meta and Apple did not immediately respond to Reuters requests for comment.

The development comes as tech giants such as Meta aggressively chase high-profile acquisitions and offer multi-million-dollar pay packages to attract top talent in the race to lead the next wave of AI.

Meta CEO Mark Zuckerberg has reorganised the company’s AI efforts under a new division called Meta Superintelligence Labs, Reuters reported last week.

The division will be headed by Alexandr Wang, former CEO of data labeling startup Scale AI. He will be the chief AI officer of the new initiative at the social media giant, according to a source.

Last month, Meta invested in Scale AI in a deal that valued the data-labeling startup at $29 billion and brought in its 28-year-old CEO Wang.



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