Positioned for the Future: Shaping the Next Generation of Data Centres

Why Australia’s Data Centre Sector must evolve with Speed, Sustainability, and Strategic Collaboration to lead in the age of AI.

Australia’s data centre deployable capacity is set to more than double from 1350 MW in 2024 to 3100 MW by 2030 (source: AFR, May 2025), driven by the increase in cloud computing, which is further amplified by the rise of artificial intelligence (AI) and the infrastructure it demands. From summits to roundtables I’ve recently attended, one message is clear: the pace of change is accelerating, and the opportunity is real. Australia can become the region’s AI and data hub with the right partnerships, planning, and purpose. But we must act now and act together.

The future of AI will significantly surpass the current trajectory of cloud computing, driving requirements for power, space, speed, and sustainability to levels we haven’t seen before. Australia is uniquely positioned to lead this transformation in our region thanks to our stable political landscape, favourable geography, and robust infrastructure. But with opportunity comes responsibility. It’s clear that to unlock this potential, coordinated efforts are essential across developers, operators, consultants, government agencies, utility providers, and head contractors. These aren’t just industry conversations; they’re critical collaborations to futureproof our position globally.

I was recently a panellist at the Property Council of Australia’s Unlocking Data Centre Event, proudly sponsored by Taylor, where we explored the sector’s evolving challenges and opportunities. The event reinforced the urgent need for cross-sector collaboration to address planning and infrastructure bottlenecks and ensure Australia is ready to meet the demands of the AI era.

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At Taylor, we’ve been active participants in this sector for over 15 years, delivering $500m+ in large-scale data centre projects for the world’s largest cloud providers. In this time, we’ve evolved, adapted, and grown our delivery capability to meet the rapidly changing demands of data centre infrastructure. The pace of change in this space is nothing short of dynamic. This volatility reminds me of the social media landscape; fast, fluid, and highly responsive to external pressures.

But through all of that, one truth remains: certainty in delivery is critical. That’s what we provide at Taylor. One of our recent successes includes delivering a 20,000sqm, two-storey, 20m-high watertight structure in approximately 32 weeks, an achievement driven by streamlined off-site fabrication, agile programming, and deep collaboration. With the experience we’ve gained, we’re now targeting even greater efficiencies, exploring initiatives that can reduce this delivery to 26 weeks, while also enhancing services and internal fit-out strategies to improve programme efficiency by up to 20%.

We understand that staying ahead in this industry requires constant learning. That’s why our teams undergo regular training, engage with emerging technologies, and partner with some of the strongest vendors in the market. This commitment to continuous improvement enables us to stay aligned with evolving design models and construction methodologies, an essential capability in a sector where innovation doesn’t slow down.

As AI workloads grow more demanding, traditional cooling methods are reaching their limits. That’s why the industry is turning to direct-to-chip (D2C) liquid cooling, an approach that delivers significantly higher thermal efficiency by bringing coolant directly to the heat source. This innovation allows data centres to operate more sustainably, even in peak conditions, and opens the door to smarter, more energy-efficient infrastructure. It’s just one example of how technology is evolving to meet the demands of the AI era, and why Australia must be ready to lead.

We are working with suppliers who are addressing issues of traditional builds. All-In-One Containers address the challenges of deploying data centres in remote sites, industrial environments, and other locations where a dedicated building or space does not exist. This enables real-time processing and resolves latency and bandwidth issues by locating a data centre closer to our clients’ operations. There is decreased risk with a pre-engineered, fully managed system, allowing flexibility to change data centre growth as our clients demands change.

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All-In-One Containers contain the entire data centre physical infrastructure, completely assembled and tested in a single ISO shipping container, and provide a value option for a prefabricated data centre. Additional benefits are that they allow agility and scalability. Prefabricated modules inherently allow for scalable growth of IT infrastructure and the flexibility to adjust the design and size of future deployment phases. Capital investments can be deferred, improving cash. Prefabricated modules are designed and built to precise specifications.

Other components of conventional data centres are being reviewed to see what we can prefabricate and bring to site assembled to reduce labour on site and quality issues. Items such as hot and cold containment framework, racking, switchboards fully assembled on skids, risers fully assembled, runs of horizontal cable tray over multiple layers, and ceiling framing are being prefabricated off-site and brought to the site to speed up installation.

Of course, none of this matters unless we’re also delivering responsibly. Sustainability is a non-negotiable part of our future, and at Taylor, it’s integrated into every stage of the design and build process. Whether it’s reducing embodied carbon through smarter material selection, incorporating energy-efficient systems that support long-term operational performance, or designing for future scalability, we’re always looking for ways to build better. I believe that with time and innovation, sustainable solutions will become the more economical choice, if we all do the work to get there.

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The opportunity is global, but competition will be fierce. The locations that offer fast, cost-efficient delivery; strong infrastructure; low-latency connectivity; and ready access to power and water will become the centres of AI and data activity. As it turns out, AI can tolerate longer latency, meaning remote or regional areas with the right utilities can compete on a global scale. That changes the game. And it means Australia must act now; planning, investing, and educating communities, so we’re ready to meet this challenge and seize this moment.

As part of this, sustainable methods will need to evolve and become more cost-efficient over time, as businesses learn better ways of working. With transport and distance playing a major role in reportable emissions, there’s also a real opportunity for Australia to localise more manufacturing, creating jobs while reducing environmental impact.

At Taylor, our collaborative, can-do approach has been key to our success. It’s embedded in our culture and underpinned by our foundations of integrity, excellence, and teamwork. We work with our clients, not just for them, always focused on delivering on time, even when priorities shift and supply chains are disrupted. We know our clients depend on us to be ready when they are, and we’re proud to be the partner they trust to deliver.

As we look forward, I’m optimistic. With the right partnerships, planning, and passion, I believe Australia, and Taylor, can help shape the next chapter of global data infrastructure.

Written by Hazem Gergis, Project Director