Amazon's $20 billion investment to give Australia a ‘beachhead' in global digital economy
Industry Minister Tim Ayres discusses Amazon's announcement to invest $20 billion in data centres in Australia, strengthening the country's AI capability.
'That investment on its own is very significant for Australia's digital infrastructure,' Mr Ayres told Sky News Australia.
'There is very significant scope to cease on these kinds of investments that give Australia a beachhead in the new global digital economy – this is absolutely in economic interest, this is absolutely in our security and broader geopolitical interest in a fast-moving, less secure world.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
ABC News
3 hours ago
- ABC News
Tasmanian Labor consulting on 'right process' for Macquarie Point stadium approval
Tasmanian Labor says it is trying to understand what the "right approval process" is for the Macquarie Point stadium, suggesting it may walk back its support for the fast-track process currently in place. The $945 million proposed waterfront stadium is being assessed by the Tasmanian Planning Commission as a Project of State Significance (POSS). But the government and others involved in the project fear the project will be unable to meet the strict timelines set out by the AFL. In June, knowing it had the support of Labor, the Liberal government introduced special legislation that would have allowed the project to bypass the planning system. It was due to be debated later this month. Instead, following a no-confidence motion in Premier Jeremy Rockliff, Tasmania is facing its fourth election in seven years. Now, Labor appears to be reconsidering its support for the legislation. When asked at a press conference if Labor would be pursuing the enabling legislation, leader Dean Winter said the party was "consulting" with stakeholders about the right process. "We need to make sure that we can get this thing built," said Mr Winter. "We've looked at the legislation and also understood from Legislative councillors that there are some real challenges there, so we'll be making announcements around that following consultation." The Legislative Council is ruled by independents and minor parties at a nine-to-six split, meaning even with both major parties on board, nothing is guaranteed. Regardless of which process it goes through — legislation or POSS — the project has to be approved by both houses of parliament. "We need to make sure whatever goes to the Legislative Council can actually get approval," Mr Winter said. "That's going to require a lot of hard work and a parliamentary process that makes sense." He would not be drawn on whether he thought the legislation would pass the upper house in its current form. "We have to get it approved and finding the right approval process to maximise the chances of actually getting it built is the most important priority here," Mr Winter said. Regardless of whether Labor wins government on July 19, its support is likely to be essential. Greens candidate Helen Burnet said while she would like Labor to walk away from the stadium altogether, she hoped the party would at least drop its support for the legislation. "They've been very unclear in the past. They've flip-flopped. It's really important with such a massive issue that they're making it very clear for Tasmanians before they vote.
News.com.au
3 hours ago
- News.com.au
Middle East crisis sends fuel prices soaring
Petrol prices in Australia could skyrocket by up to 12 cents a litre following Israel's announcement it had launched strikes on 'dozens' of military targets in Iran. Israel Prime Minister Benjamin Netanyahu said the Friday attacks were a response to Tehran's building of nuclear warheads and the operation would continue 'for as many days as it takes to remove this threat'. 'We struck at the heart of Iran's nuclear enrichment program,' Mr Netanyahu said during a live address. 'We struck at the heart of Iran's nuclear weaponisation program. We targeted Iran's main enrichment facility in Natanz. We targeted Iran's leading nuclear scientists working on the Iranian bomb. We also struck at the heart of Iran's ballistic missile program.' Global markets were quick to react to Mr Netanyahu's announcement, with oil prices surging in the wake of the strikes. Crude oil prices rose 10 per cent amid concern from traders that ongoing conflict between Israel and Iran could disrupt global supplies. Oil costs have immense flow-on effects to other markets that rely on fuel to ship their products. In Australia, that impact could exacerbate an already strained cost of living crisis, with supermarkets passing on increased petrol costs for truck movements to Aussie consumers. AMP chief economist Shane Oliver said the oil price spike caused by the Israel-Iran conflict will equate to higher petrol prices. He said Australians could be looking a 12-cent hike to petrol prices if the increase to global markets continues. 'Much will depend on Iran's retaliation and whether it returns to US nuke talks, which Israel may be trying to force,' Mr Oliver said. Mr Oliver's prediction backs those of global analysts who said all eyes would be on Iran's next move in the escalating conflict. 'It's an explosive situation, albeit one that could be defused quickly as we saw in April and October last year, when Israel and Iran struck each other directly,' Vandana Hari of Vandana Insights told the BBC. 'It could also spiral out into a bigger war that disrupts Mideast oil supply. A worst-case scenario for global oil supply could see Iran disrupt shipping infrastructure in the Strait of Hormuz where millions of barrels are moved per day. The strait is one of the world's most important shipping routes, accounting for a huge 20 per cent of the global oil supply. The Strait of Hormuz connects The Gulf with the Arabian Sea and is bordered by Iran to the north and Oman and the United Arab Emirates in the south.
News.com.au
3 hours ago
- News.com.au
Amazon mega deal underscores economic relationship with US, minister says
Amazon's $20bn investment into Australian data centre infrastructure underscores the economic relationship with the US ahead of Anthony Albanese's first face-to-face with Donald Trump, Labor's industry tsar says. The Prime Minister announced the mega deal with Amazon at the tech giant's headquarters in Seattle overnight. Speaking to media, Mr Albanese also said he and the US President had 'scheduled' a meeting on the sidelines of the G7 in Canada after Mr Trump confirmed he would attend the summit. Pressure has been mounting on Mr Albanese to secure a carve out from sweeping US tariffs and shore up Washington's support for AUKUS after the Trump administration launched a review of the $368bn defence pact. Industry and Innovation Minister Tim Ayres said on Sunday the deal was 'not designed' to send a message to Mr Trump but that 'it certainly does underscore the depth of the economic and strategic and technological relationship' with the US. 'It's not just about trading in goods and services,' Senator Ayres told Sky News. 'It's about collaboration around science and research and development and in industrial terms.' He singled out AUKUS as 'offering opportunities for Australian and United States firms … to invest in each other's economy', highlighting it as 'a real counterpoint to the position that the United States has adopted around tariff announcements'. 'They are not the act of a friend, as has been said repeatedly by me and my colleagues,' Senator Ayres said. 'They are not in Australia's interest, but they're not in the United States' interest either. 'Australian steel, for example, exported to the United States, feeds into American supply chains and supports competitive industry that provides good jobs for American workers. 'Why on Earth would anybody want to make Australian steel in the United States more expensive? 'That's what the tariff measures do.' He said Mr Albanese would be putting that 'position directly to the President of the United States' when they meet next week. 'But the Amazon announcement does underscore how vital the direct economic relationship really is,' Senator Ayres said. At his Seattle press conference announcing the deal, Mr Albanese said he would raise tariffs and AUKUS with Mr Trump. Though he stopped short of saying the Amazon announcement was a message to the US leader. 'The US (Free Trade Agreement) has been important,' Mr Albanese told reporters. 'It's enjoyed bipartisan support in Australia and indeed in the United States. 'And so we welcome very much American investment in Australia.' He added it was 'important to recognise as well that the United States has a two for one surplus when it comes to the trading relationship in not just in goods, but in services as well'. 'And we want to grow the economic relationship between our two countries,' Mr Albanese said. 'And I'm sure that when I have the opportunity to have discussions with President Trump, we will speak about the important economic relationship between our two countries, which is in the interests of both Australia and the United States.' Under the deal, Amazon has committed to pumping cash into developing data centres in Melbourne and Sydney over the next five years, focusing on storage, networking, analytics, and secure services supporting cloud and AI. The firm will build renewable energy sources to support its operations. Speaking alongside Mr Albanese, Amazon Web Services chief executive Matt Garman dismissed concerns Australia's grid lacked the power needed for AI. 'I think definitely the explosion of AI requires a lot of power, so that's one of the things we're thinking about,' Mr Garman told reporters. 'I think here in the United States, we see nuclear as part of that portfolio. 'Our investments in Australia are wind and solar, but I think depending on the local setup and economies and other things, it's a global question, but there's no question that we will continue to need more and more power going forward.'
