Author: Vanessa May

La Trobe University Embraces ‘AI-First’ Approach for a Brighter Future

In Brief:

• La Trobe University is implementing an ‘AI-first’ approach to boost innovation, research, and the student experience.
• AI will be woven into curricula to effectively prepare graduates for a workforce increasingly driven by AI.
• Collaborations with Microsoft and CyberCX will facilitate digital transformation and enhance cybersecurity initiatives.
• Programs will include AI-centric training for both staff and students, skill development initiatives, micro-credentials, and scholarships.
• La Trobe strives to merge innovation with strong data security practices in partnership with Microsoft.

La Trobe’s AI-First Initiative: A Pioneering Move

La Trobe University has unveiled an ambitious ‘AI-first’ initiative intended to transform its educational and operational framework. This innovative project aims to harness the capabilities of artificial intelligence (AI) to elevate innovation, enhance research output, augment staff effectiveness, and enrich the student experience throughout the institution.

The university intends to incorporate AI into its educational programs, equipping graduates for an increasingly AI-centric workforce. This strategy mirrors a wider shift within global higher education as institutions adapt to rapid technological advancements. In conjunction with this initiative, La Trobe will encourage staff to embrace AI technologies, utilizing new tools to advance scientific inquiry and expertise across varied fields.

Collaborative Efforts with Microsoft and CyberCX

To actualize this vision, La Trobe University has partnered with technology leader Microsoft and cybersecurity specialist CyberCX. Over the forthcoming three years, these collaborations will furnish essential resources, such as guest lectures, industry participation, and scholarship provisions. Moreover, this alliance will foster careers in cybersecurity, fund digital evolution, and provide industry-acclaimed certifications along with micro-credentials to arm students with vital, practical skills.

Vice-Chancellor Professor Theo Farrell emphasizes that La Trobe aims to be the preferred university for students, employers, and stakeholders in pursuit of AI-ready talent. “Technology, particularly AI, opens up tremendous opportunities for our community, and we aspire to lead in embracing and implementing these revolutionary technologies,” said Farrell. His vision showcases the university’s dedication to remaining ahead in global educational and technological developments.

Innovation Balanced with Security

While the university is enthusiastic about AI’s potential, it remains vigilant regarding security concerns. La Trobe’s Chief Information Officer (CIO), Shainal Kavar, underscored the necessity of embedding security at every level of their digital transformation efforts. Kavar elaborated that the university is dedicated to ensuring that its initiatives are supported by strong security protocols, especially concerning data protection and privacy.

Kavar cited an instance where the university’s legal department employed AI tools to address complex security and privacy issues, illustrating how AI can serve as a valuable asset in confronting real-world challenges. Furthermore, La Trobe collaborates closely with Microsoft to ensure that innovation and security coexist, enabling students and staff to access new technologies safely.

AI Proficiency Programs for Staff

To guarantee AI’s effective adoption across its activities, La Trobe University is launching various training initiatives designed for staff education. According to Ali Juma, the university’s Change and Engagement Lead for Responsible AI Adoption, these programs encompass an AI proficiency initiative aimed at cultivating a fundamental understanding of AI among employees.

The AI proficiency initiative represents just one facet of a comprehensive strategy to prepare staff to utilize AI competently in their roles. Juma commented that this effort aspires to empower staff to appreciate AI’s potential alongside the specific actions the university is taking for secure and responsible implementation.

Digital Team Skills Initiative

In partnership with Microsoft, La Trobe plans to initiate an ‘Enterprise Skills Initiative’ tailored specifically to advance the capabilities of its digital team. This program will ensure that La Trobe’s digital system and personnel are adequately equipped to meet the challenges of an AI-enhanced future. By enhancing the digital team’s skill set, the university aims to foster a smoother and safer integration of AI into its academic and operational structures.

Conclusion

La Trobe University is making a significant leap forward by adopting an ‘AI-first’ approach that seeks to transform its educational and operational methodologies. With strategic alliances with Microsoft and CyberCX, the university is poised to create an AI-enhanced environment for students and staff, all while emphasizing security. Additionally, La Trobe is introducing multiple training programs and proficiency initiatives to ensure its workforce is capable of navigating AI effectively. This audacious step positions La Trobe as a frontrunner in AI education, geared up to cultivate the next wave of AI-competent professionals.

Q&A: Dissecting La Trobe’s AI-First Initiative

Q: What does La Trobe’s ‘AI-first’ strategy signify?

A:

La Trobe’s ‘AI-first’ strategy signifies its dedication to incorporating artificial intelligence into every aspect of its operations, encompassing its curriculum, research endeavors, and administrative tasks. The primary objective is to prepare the university for a future shaped by AI, ensuring that its students and staff possess the necessary skills to excel in an AI-centric world.

Q: What role will Microsoft and CyberCX have in this initiative?

A:

Microsoft and CyberCX will act as crucial collaborators, providing La Trobe with resources including guest lecturers, industry-certified training, scholarships, and cybersecurity knowledge. These partnerships will facilitate La Trobe’s rapid digital transformation, encourage careers in cybersecurity, and offer students certifications recognized by industry leaders.

Q: How will this strategy benefit students?

A:

Students will gain from a curriculum enriched by AI, priming them for a future workforce where AI competencies are increasingly sought after. They will also have access to scholarships, micro-credentials, and career pathways in the AI and cybersecurity fields, aided by partnerships with industry giants like Microsoft and CyberCX.

Q: What steps is La Trobe implementing to ensure data security?

A:

La Trobe is collaborating closely with Microsoft to guarantee that all AI implementations are supported by robust security measures. The university is particularly committed to safeguarding data privacy and ensuring all new technologies are protected against potential cyber threats.

Q: How will staff be prepared to use AI effectively?

A:

La Trobe is introducing an AI proficiency program for all staff that will impart foundational knowledge regarding AI and its applicability within the university. Furthermore, specialized training programs will be provided to assist staff in understanding and utilizing AI tools in their everyday tasks.

Q: What is the Enterprise Skills Initiative?

A:

The Enterprise Skills Initiative is a program launched in conjunction with Microsoft to elevate the skills of La Trobe’s digital team. This initiative is designed to ensure that the university’s digital infrastructure and personnel are well-equipped to support the integration and application of AI technologies.

Q: How does this strategy position La Trobe University within the global education arena?

A:

By endorsing an ‘AI-first’ strategy, La Trobe University establishes itself as an innovative institution at the cutting edge of AI advancements. This initiative not only benefits its students and faculty but also enhances its standing as a leading provider of AI education both domestically and internationally.

EU Directs Apple to Cease Geo-Blocking Activities

Summary:

• The European Union is urging Apple to put an end to geo-blocking on platforms such as the App Store, Apple Arcade, and iTunes.
• The European Commission has pinpointed various geo-blocking tactics it considers potentially unlawful.
• Apple has a month to present a strategy to mitigate these issues.
• Geo-blocking limits digital content accessibility according to a user’s geographic position, often leading to varying prices and availability.
• The EU’s goal is to eradicate these practices to foster an integrated digital market throughout Europe.

Understanding Geo-Blocking and Its Importance

Geo-blocking refers to the limitation of access to specific digital content based on a user’s location. For instance, an individual in Australia might enjoy less access to offerings on Apple Music or the App Store compared to someone in Europe or the United States. Additionally, geo-blocking frequently results in price differences dictated by location, raising issues regarding fairness and consumer rights.

For many years, geo-blocking has emerged as a controversial topic, especially within the European Union, where initiatives have been undertaken to develop a more cohesive digital marketplace. The EU has consistently pushed for the removal of obstacles preventing consumers from accessing products and services across borders among its member nations.

The EU’s Action Against Apple’s Geo-Blocking

The European Commission has recently adopted a firm position against Apple’s geo-blocking practices. Platforms like the App Store, Apple Arcade, iTunes Store, Apple Music, and Books have been singled out for implementing geographical restrictions, with the Commission suggesting these may violate EU competition regulations.

Margrethe Vestager, the European Commissioner for Competition, has openly criticized geo-blocking. She argues that no enterprise, regardless of its size, should partake in practices that unjustly discriminate against consumers based on their nationality or residence. The EU is especially worried that geo-blocking is curtailing consumer alternatives and raising costs for users in select areas.

Apple Faces One-Month Deadline

The European Commission has allotted Apple one month to draft a plan to alleviate the apprehensions surrounding its geo-blocking tactics. Should Apple not comply, it might confront enforcement actions from national regulators within the EU.

This marks another instance of the EU taking a stand against a major tech corporation for anti-competitive behaviors. In recent times, the bloc has levied fines and compelled adjustments in the operations of companies like Google and Amazon within its jurisdiction. Apple now finds itself under the EU’s scrutiny in the ongoing endeavor for a fair digital marketplace.

Potential Implications for Consumers

If Apple adheres to the EU’s directives, consumers may experience several shifts, especially regarding the accessibility and pricing of digital content throughout Europe. For instance, content that was once confined to specific regions may become available to users across the continent. Furthermore, price standardization may take place, resulting in users from different nations paying closer prices for identical content.

For Apple users in regions outside Europe, such as Australia, the EU’s actions could establish a precedent. While the EU’s legal authority does not extend to Australia, global technology firms often tweak their policies universally to ensure uniformity. This could mean that Australians might eventually reap the benefits of similar initiatives, potentially gaining access to content that was previously restricted or priced differently.

The EU’s Focus on Geo-Blocking

The elimination of geo-blocking is a key component of the European Union’s strategy for a Digital Single Market. This initiative seeks to establish a seamless digital environment across all EU member states, enabling consumers to access digital products and services without barriers based on their location.

Historically, the EU has enacted regulations to eradicate geo-blocking for physical items like electronics or clothing; however, digital content has proven to be a more complex challenge. The EU’s actions against Apple are part of a wider movement aimed at extending the advantages of a unified market into the digital field, ensuring that consumers can make cross-border transactions without undue restrictions.

Summary:

The EU has instructed Apple to cease its geo-blocking practices on platforms like the App Store, Apple Arcade, and iTunes. The EU is convinced that these practices unjustly restrict consumer access to digital content based on geographic location, inflating prices and limiting availability. Apple must respond to the EU’s concerns within a month or risk facing enforcement actions. Although the focus is largely on Europe, the outcome could have worldwide repercussions, potentially impacting Australian consumers in the future.

Q: What is geo-blocking, and how does it impact users?

A:

Geo-blocking is a method where companies limit access to particular digital content or services based on a user’s geographical location. This often leads to variations in content availability and pricing for users in different regions. For example, an Australian user may not be able to access the same films or applications offered in the US or Europe.

Q: Why is the EU concerned about Apple’s geo-blocking practices?

A:

The EU contends that geo-blocking practices restrict consumer choices, raise prices, and generate unjust market conditions. By limiting content access based on location, companies like Apple may be infringing on EU competition laws, which seek to promote a more integrated digital marketplace throughout Europe.

Q: What is the timeframe for Apple to respond to the EU’s requests?

A:

Apple has been granted a one-month period to provide a solution addressing the EU’s concerns regarding geo-blocking. Should Apple fail to offer a satisfactory resolution, it could become subject to enforcement actions from national regulators throughout Europe.

Q: Will these developments affect Apple users in Australia?

A:

Even though the EU’s legal jurisdiction is limited to Europe, international tech firms like Apple usually revise their policies globally for uniformity. If Apple introduces major adjustments to its geo-blocking approaches in Europe, Australian consumers could ultimately experience similar advantages, such as greater access to content and more consistent pricing.

Q: What overarching goal is the EU pursuing with its crackdown on geo-blocking?

A:

The EU’s objective is to shape a Digital Single Market where consumers can engage with products and services across borders freely without restrictions. The crackdown on geo-blocking is part of this strategy, aimed at dismantling digital barriers and ensuring that consumers enjoy equal access to digital content throughout the EU.

Q: Which other companies has the EU scrutinized for anti-competitive behavior?

A:

In recent years, the EU has scrutinized several prominent tech firms, including Google and Amazon, for anti-competitive actions. These cases often revolve around issues related to market dominance, unfair pricing, and breaches of data privacy. Apple now joins the ranks of companies facing EU examination in its pursuit of a more equitable digital marketplace.

Concise Overview

• Asset management firm HMC Capital is set to acquire data centre provider iseek for $400 million.
• iseek manages seven co-location data centres located in Queensland, South Australia, and New South Wales.
• This acquisition follows HMC Capital’s $1.9 billion takeover of Global Switch Australia, strengthening its data centre assets.
• iseek services more than 500 clients and aims to enhance its IT capacity from 6MW to 34MW.
• The acquisition will be incorporated into HMC’s DigiCo Infrastructure REIT, which is expected to be launched on the Australian Stock Exchange (ASX).
• DigiCo Infrastructure will supervise 13 tier 1 and 2 hyperscale and co-location data centres in Australia and North America.

HMC Capital Acquires iseek for $400 Million

iseek’s Growing Presence in Australia

Queensland-based data centre operator iseek has been acquired by asset management firm HMC Capital for a value of $400 million. With a network of seven co-location data centres distributed across Queensland, South Australia, and New South Wales, iseek has emerged as a key player in Australia’s data centre sector.

Currently, iseek caters to over 500 clients, with an existing IT capacity of 6MW. The company has plans to significantly ramp up its overall capacity to 34MW. This acquisition is expected to facilitate iseek’s growth, laying a robust groundwork for further advancement in the Australian market.

HMC Capital’s Expanding Data Centre Holdings

This acquisition is the latest initiative by HMC Capital to reinforce its foothold in the Australian data centre landscape. Merely two weeks earlier, HMC Capital announced it would acquire another significant entity, Global Switch Australia, for a total of $1.9 billion.

Both acquisitions will be integrated into a new real estate investment trust (REIT) known as DigiCo Infrastructure, which HMC intends to list on the Australian Stock Exchange (ASX). DigiCo Infrastructure will encompass a total of 13 tier 1 and 2 data centres, not only within Australia but also extending to North America.

Incorporating iseek’s data centres into DigiCo’s portfolio will enable HMC Capital to enhance its footprint in the booming hyperscale and co-location data centre markets, which are being driven by rising demand for cloud services, data storage, and digital solutions.

The REIT Vision

DigiCo Infrastructure is designed to leverage the surging demand for data infrastructure on a global scale. By listing this trust on the ASX, HMC Capital aims to draw in investors interested in digital infrastructure, a sector that has exhibited exceptional resilience and growth potential.

HMC’s clear strategy positions DigiCo Infrastructure as a central player within the hyperscale data centre market. Through its acquisitions of iseek and Global Switch Australia, DigiCo will provide various services to clientele in Australia and North America, offering both co-location and hyperscale solutions.

iseek’s Leadership Enthusiastic About Growth Initiatives

The leadership at iseek seems entirely supportive of the acquisition. In a joint statement, iseek CEO Scott Hicks and founder Jason Gomersall conveyed their positive outlook for the future. They remarked that the acquisition would “accelerate iseek’s next growth phase,” and a considerable portion of the acquisition funds will be taken in shares of DigiCo’s REIT IPO. This reflects their faith in the REIT’s investment strategy and future growth.

This move aligns seamlessly with iseek’s own ambitions to scale operations and enhance its customer base, creating a beneficial scenario for both iseek and HMC Capital.

Conclusion

iseek, a notable data centre operator with locations in Queensland, South Australia, and NSW, has been acquired by HMC Capital for $400 million. This acquisition forms part of HMC’s broader strategy to expand its data centre portfolio through DigiCo Infrastructure, a new REIT that will oversee 13 data centres across Australia and North America. The agreement is anticipated to expedite iseek’s growth and expand its capacity. This acquisition follows HMC’s recent acquisition of Global Switch Australia for $1.9 billion.

Q: What is iseek?

A:

iseek is a data centre provider based in Queensland, Australia. The company runs seven co-location data centres across Queensland, South Australia, and New South Wales, serving over 500 clients by providing IT infrastructure, including cloud services and data storage.

Q: What does HMC Capital’s acquisition of iseek mean for the Australian data centre market?

A:

HMC Capital’s acquisition of iseek reflects a growing interest in Australia’s data centre infrastructure, particularly in the sectors of co-location and hyperscale facilities. With HMC acquiring both iseek and Global Switch Australia, the company positions itself as a key player in the region’s digital infrastructure market, which is anticipated to experience significant growth in the coming years.

Q: What is DigiCo Infrastructure?

A:

DigiCo Infrastructure is a real estate investment trust (REIT) established by HMC Capital to oversee its data centre portfolio. DigiCo will eventually manage 13 tier 1 and 2 hyperscale and co-location data centres across Australia and North America, inclusive of iseek’s facilities. DigiCo anticipates listing on the ASX, allowing investors to purchase shares in the trust.

Q: Why are data centres becoming such a strategic investment?

A:

Data centres are essential infrastructure in today’s digital economy. The escalating demand for cloud services, data storage, and digital solutions has resulted in businesses and governments increasingly relying on data centres for their IT requirements. This trend has rendered data centres a highly appealing investment for asset managers like HMC Capital, especially as the digital economy keeps expanding globally.

Q: How will the acquisition affect iseek’s customers?

A:

iseek’s customers will likely not notice immediate changes due to the acquisition. In fact, the deal is expected to accelerate the company’s growth and enhance its capacity from 6MW to 34MW. This increase could translate to improved services and greater capacity for existing clients in the near future.

Q: What are the future growth prospects for DigiCo Infrastructure?

A:

DigiCo Infrastructure is well-situated for growth, particularly with the rising demand for digital infrastructure. With 13 data centres operating across Australia and North America, DigiCo possesses a strong base to capitalize on the growing need for hyperscale and co-location data services. Furthermore, the listing of DigiCo on the ASX will provide access to capital, propelling its growth ambitions even further.

AMP Welcomes New Leader for Small Business Digital Division

AMP is taking a notable step into the realm of digital banking by appointing John Arnott, who previously worked with Woolworths’ data and digital subsidiary WooliesX, as the leader of its newly formed small business digital banking division. This personnel choice aligns with AMP’s strategy to improve its offerings for small business banking, with an official launch slated for early 2025.

Quick Overview

• AMP has hired John Arnott, formerly of WooliesX, to head its new small business digital banking division.
• The division will utilize the UK-based Starling Bank’s ‘Engine’ platform for its transactions, payments, and deposits.
• The launch of the division is anticipated for early 2025, targeting both small business and personal banking customers.
• Arnott brings extensive expertise in digital development, having been associated with WooliesX, Commonwealth Bank, Facebook, and ING.
• AMP is also enhancing its superannuation and investment sector with new recruits to promote digital innovation.

John Arnott at the Helm of AMP’s Small Business Digital Division

John Arnott will direct AMP’s new small business digital banking division, leveraging his vast experience from working at Woolworths’ WooliesX. In his role as Director of Small Business and Personal Banking, Arnott will guide the division’s efforts involving transactions, payments, and deposits. The division will harness the innovative ‘Engine’ platform from the UK-based Starling Bank, renowned for its advanced technology in the financial services arena.

Arnott conveyed his enthusiasm for the position, stating, “This division has the potential to deliver significant value to the success of both small businesses and personal banking clients.” The initiative aims to cater specifically to the needs of small enterprises by providing efficient, digitally-oriented banking solutions.

Bringing Rich Experience to the Position

Arnott’s appointment showcases AMP’s dedication to innovation and user-oriented banking services. He has previously spearheaded customer growth for e-commerce at WooliesX, where he played a vital role in fostering digital transformation. His diverse experience includes positions at Commonwealth Bank, Facebook, and ING, equipping him with a comprehensive viewpoint on digital banking and customer interaction.

Driven by Starling Bank’s ‘Engine’ Platform

The new digital banking division of AMP will be supported by Starling Bank’s ‘Engine’ platform, a state-of-the-art technology designed to meet contemporary banking challenges. Based in the UK, Starling Bank is recognized for its digital-first strategy and has been a trailblazer in delivering customized solutions for small firms.

This Engine platform will serve as the foundation for AMP’s small business banking services, ensuring smooth transaction processing, payment handling, and deposit operations. It is expected to equip small businesses with essential tools for effective financial management, emphasizing speed, security, and user-friendliness.

Anticipated Launch in Early 2025

As the division prepares for its debut in early 2025, AMP is establishing itself as a significant contributor to the digital banking field. The company intends to craft a banking experience that addresses the unique requirements of small businesses, providing tailored solutions that are frequently absent in traditional banking setups.

AMP Enhances Superannuation and Investment Division

Alongside its initiative in small business banking, AMP is also concentrating on its superannuation and investment sectors. The firm has recently made two strategic appointments—Julie Slapp and Cloe Reece—to spearhead design for customer solutions and drive innovation in these sectors.

These additions form part of AMP’s overarching strategy to elevate its digital services overall, guaranteeing that customers have access to advanced tools and services for managing their financial futures.

Conclusion

The appointment of John Arnott to lead AMP’s new small business digital banking division clearly demonstrates the company’s commitment to innovation and client-centered banking services. With a launch expected in early 2025 and powered by Starling Bank’s ‘Engine’ platform, AMP is set to provide small businesses with an agile and digitally-focused banking experience. The company is also strengthening its superannuation and investments division through key hires aimed at enhancing digital innovation.

Q: What is AMP’s new small business digital banking division?

A:

AMP’s new small business digital banking division is a specialized unit dedicated to delivering banking services including transactions, payments, and deposits specifically designed for small businesses. This division will utilize Starling Bank’s ‘Engine’ platform and is anticipated to launch in early 2025.

Q: Who is John Arnott, and what is his role?

A:

John Arnott has been appointed as the Director of Small Business and Personal Banking at AMP. He will oversee the new small business digital banking division, drawing on his extensive experience from WooliesX, Commonwealth Bank, Facebook, and ING.

Q: How will AMP’s small business banking division benefit small businesses?

A:

The division is designed to offer small businesses tailored banking services that prioritize efficiency, security, and usability. By leveraging the ‘Engine’ platform from Starling Bank, AMP plans to provide seamless transaction handling, payments, and deposit functionality, assisting businesses in managing their finances with greater ease.

Q: When will the small business digital banking division launch?

A:

The small business digital banking division is projected to launch in early 2025.

Q: What is Starling Bank’s ‘Engine’ platform?

A:

Starling Bank’s ‘Engine’ platform is a digital banking technology originating in the UK that is designed to facilitate modern financial transactions. It will act as the backbone for AMP’s small business digital banking services, delivering a streamlined and effective banking experience for business owners.

Q: How is AMP strengthening its superannuation and investments business?

A:

AMP has recently brought in new talent, including Julie Slapp and Cloe Reece, to enhance design processes for customer solutions and foster digital innovation in its superannuation and investments units. This is part of AMP’s larger strategy to elevate its digital offerings across various business areas.

Global Switch Australia Reverts to Local Ownership in $1.94 Billion Transaction

Global Switch Australia is preparing to transition back to local ownership as it is acquired by Australian asset manager HMC Capital for approximately $1.94 billion. This deal signifies an important transition in the control of essential digital infrastructure in Australia, especially in light of heightened concerns regarding data sovereignty and security.

Quick Overview

• Global Switch Australia is being taken over by HMC Capital for $1.94 billion.
• The deal encompasses two data centres located in Sydney, which will be integrated into a new digital infrastructure platform.
• The data centres currently boast a capacity of 26MW, with potential enhancements allowing growth up to 88MW through optimisation initiatives.
• HMC plans to bring the digital infrastructure platform to the ASX via a real estate investment trust (REIT).
• Global Switch has experienced persistent issues due to its foreign ownership, particularly from governmental clients like Defence.
• The acquisition will localise Global Switch’s ownership, alleviating these concerns while paving the way for better expansion and update efforts.

A Significant Change in Australia’s Digital Framework

The acquisition of Global Switch Australia by HMC Capital transcends mere financial implications; it marks a pivotal change in the ownership of vital digital infrastructure within the nation. The twin data centres situated near Sydney’s CBD are poised to serve as foundational assets within an overarching digital infrastructure platform. This platform will be managed by a real estate investment trust (REIT) and be listed on the Australian Securities Exchange (ASX), facilitating public investment in this vital infrastructure.

Presently, Global Switch operates at around 26MW capacity, yet HMC Capital has proactively detailed intentions for a “densification and optimisation” project. This endeavor could elevate capacity to 88MW, essentially tripling the data centres’ capability to accommodate growing demand from high-performance computing and AI applications.

Significance of Local Ownership

Having been under foreign control for a significant duration, Global Switch has faced challenges, particularly from its governmental clients. For instance, the Australian Defence Department has contemplated exiting the facility for years due to worries surrounding data sovereignty and security. Other governmental bodies, such as Home Affairs and ASIC, have already initiated steps to vacate Global Switch’s data centres.

This acquisition by HMC Capital is anticipated to mitigate these issues. With Global Switch transitioning to a fully Australian-owned entity, it will be better positioned to fulfil the rigorous demands of various Australian governmental departments, particularly concerning privacy, sovereignty, and security.

Enhancing Capacity and Modernising Infrastructure

Global Switch Australia’s CEO, Damon Reid, has praised the acquisition as a new phase for the company. He underscored the committed investment into modernising the existing infrastructure, centering on enhanced power densities and improved energy and water efficiencies. The planned enhancements are critical as the company strives to accommodate the surging demand for high-performance computing and artificial intelligence (AI) inference workloads.

These anticipated upgrades aim to elevate the company’s IT capacity to approximately 100MW, establishing the Sydney campus as a significant contender in the Australian data centre industry. Moreover, HMC Capital is reportedly considering hyperscale assets in North America to incorporate into the REIT, thereby expanding the company’s international presence.

Alignment with Hosting Certification Framework

A primary focus for the newly Australian-owned Global Switch will be to collaborate closely with the government to secure accreditation through the Hosting Certification Framework. This framework assists Australian governmental departments and agencies in identifying hosting services that satisfy heightened privacy, sovereignty, and security criteria. Attaining certification will be pivotal for Global Switch to retain and attract governmental clients in the years to come.

Conclusion

Global Switch Australia is moving towards local ownership, with HMC Capital taking over for $1.94 billion. This acquisition responds to longstanding issues relating to foreign ownership, specifically from governmental tenants like Defence. The deal includes two data centres in Sydney, which may see capacity rise from 26MW to 88MW through future enhancements. HMC Capital intends to list the data centre assets on the ASX via a real estate investment trust (REIT). The acquisition also encompasses plans for upgrades to support high-performance computing and AI workloads. Additionally, Global Switch will aim to secure government accreditation under the Hosting Certification Framework, further aligning its operations with Australian sovereignty and security needs.

Q: What makes the acquisition of Global Switch Australia important?

A:

The acquisition by HMC Capital is important as it reestablishes critical digital infrastructure under Australian control, addressing ongoing issues related to foreign ownership, particularly in areas handling sensitive government information. This change also lays the groundwork for future growth and modernization of the data centres.

Q: What assets are central to this deal?

A:

The major assets involved are two data centres situated close to Sydney’s CBD. These centres will function as foundational assets for a new digital infrastructure platform that will be listed on the ASX through a real estate investment trust (REIT).

Q: What impact will the acquisition have on Global Switch’s data capacity?

A:

The data centres currently have a capacity of 26MW, but HMC Capital aims to boost this to 88MW via a densification and optimisation initiative. Additional upgrades will expand the total IT capacity to around 100MW to satisfy rising demand for high-performance computing and AI workloads.

Q: What is the Hosting Certification Framework, and why is it significant?

A:

The Hosting Certification Framework is utilized by Australian governmental departments and agencies to identify hosting services that comply with strict privacy, sovereignty, and security standards. Attaining certification under this framework will be vital for Global Switch to keep serving government clients.

Q: How does this acquisition influence governmental clients like Defence?

A:

The acquisition greatly alleviates concerns surrounding foreign ownership for government clients like the Defence Department. With Global Switch now being locally owned, these clients are more inclined to maintain or renew contracts, as the new ownership structure is expected to align more closely with Australian data sovereignty and security requirements.

Q: What are the prospective plans for Global Switch under HMC Capital?

A:

HMC Capital intends to enhance and increase the capacity of the data centres, prioritizing power density, energy efficiency, and water efficiency improvements. Additionally, the company is exploring the acquisition of hyperscale assets in North America to further enrich its digital infrastructure portfolio.