Defence Exits Global Switch Data Centre One Year Ahead of Schedule
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Defence Finalises Early Departure from Global Switch Data Centre
Quick Overview
- The Australian Department of Defence has effectively exited Global Switch data centres a year before the planned schedule.
- This relocation was driven by national security issues linked to Global Switch’s past Chinese ownership.
- Defence now manages its data through Canberra Data Centres (CDC), Microsoft Azure, and AWS.
- The department has entered into a $92 million agreement with CDC and a $109 million partnership with Microsoft Azure.
- A significant $2 billion contract with AWS for the highly confidential ‘TS Cloud’ will extend over the next 10 years.
- Other governmental entities such as Home Affairs and ASIC have also transitioned away from Global Switch facilities.
Reasons for Defence’s Early Exit
The Australian Department of Defence has successfully exited Global Switch Australia’s data centres a year ahead of its lease term. The decision was influenced by national security apprehensions following the acquisition of Global Switch by a Chinese consortium. Even though the facilities have reverted to Australian ownership, Defence adhered to its exit plan, ensuring that all sensitive information is now housed in Australian-owned or government-sanctioned sites.
Updated Hosting Provisions
Defence’s data is now effectively hosted on various platforms, including Canberra Data Centres (CDC), Microsoft Azure, and AWS. This is in line with the overall hosting strategy of the Australian government, which prioritises security, sovereignty, and efficiency in operations.
Notable hosting agreements include:
- A $92 million, ten-year contract with Canberra Data Centres, established in 2022.
- A $109 million, three-year contract with Microsoft Azure for cloud services and enterprise subscriptions.
- A $2 billion, decade-long agreement with AWS for the highly confidential ‘TS Cloud’ service.
Security Issues Surrounding Global Switch
Global Switch manages highly secured data centres utilized by a range of Australian government agencies. However, in 2016, its parent company, Aldersgate Investments, sold a 49% stake to the Chinese consortium Jiangsu Shagang Group, which later nearly acquired full control by 2019.
In light of escalating security concerns, the federal government enforced stringent conditions on Global Switch, which led Defence to formulate an exit strategy. The department initially aimed to exit by 2020 but faced obstacles in moving its substantial data reserves.
Migration Challenges
Despite the initial timeline, Defence encountered difficulties throughout the migration process, resulting in a five-year postponement. In 2020, it extended its lease with Global Switch, delaying the official exit date to September 2025. However, Defence hastened its efforts and successfully finished the migration by June 2024—one year earlier than expected.
By 2022, other governmental bodies, including the Department of Home Affairs, the Australian Securities and Investments Commission (ASIC), and the Australian Communications Media Authority (ACMA), had also departed from Global Switch facilities.
Conclusion
The Department of Defence has effectively transitioned away from Global Switch’s data centres, focusing on national security by relocating to Australian-owned and government-endorsed cloud hosting. This shift guarantees data sovereignty and aligns with the government’s wider cloud strategy. Despite initial migration setbacks, Defence completed the transition a year ahead of schedule, safeguarding its data within reliable infrastructure.
Q: What prompted the Department of Defence’s early departure from Global Switch?
A:
Defence departed early due to national security issues arising from Global Switch’s earlier ownership by a Chinese consortium. Although the facilities have reverted to Australian control, the government prioritised relocating data to locally governed environments.
Q: Where is Defence currently hosting its data?
A:
Defence now hosts its data across various platforms: Canberra Data Centres (CDC), Microsoft Azure, and AWS. These service providers deliver secure, Australian-owned, or government-approved hosting options.
Q: What is ‘TS Cloud’?
A:
‘TS Cloud’ is a highly classified cloud computing platform managed by AWS under a $2 billion contract with the Australian government. It is designed to securely store and manage classified government information.
Q: What were the obstacles faced during Defence’s migration from Global Switch?
A:
Defence encountered challenges in transferring substantial amounts of sensitive data, leading to delays. The transition, originally slated for completion by 2020, was prolonged due to technical and logistical difficulties.
Q: Did other government agencies also move out of Global Switch?
A:
Yes, other entities such as the Department of Home Affairs, ASIC, and ACMA exited Global Switch’s facilities by 2022, prompted by similar security worries.
Q: How does this transition align with government data policies?
A:
This shift is in harmony with the whole-of-government hosting strategy, which emphasises data security, sovereignty, and operational efficiency within Australian-controlled infrastructures.
Q: What does this mean for Australia’s cybersecurity?
A:
By transitioning to Australian-owned and approved cloud services, the government bolsters national cybersecurity, minimising risks connected to foreign-controlled infrastructures.
Q: Will other government data centres take similar actions?
A:
While many agencies have already transitioned to secure, local cloud services, the government continues to assess and execute strategies to protect sensitive data across all departments.
