Australia flags national security datacenter investment constraints; sovereign control concerns raised as risk factor.

Australia's data centre operators are warning that tougher government penalties and stricter supply chain checks—introduced to strengthen national security obligations—could dampen investment in artificial intelligence. Even as experts contend that the sector must do more to protect critical national assets, the peak body representing data centres has raised concerns about the cost and compliance burden of upcoming government reforms designed to protect high-risk infrastructure against cybersecurity and physical attacks.