Why Australia’s tech sovereignty needs smart partnerships

Geopolitical risk, cyber threats and outages are driving a rethink of how we build, run and protect the infrastructure powering the economy, argues Mark Hile, Datacom MD, Infrastructure Products.

As someone entrusted with overseeing infrastructure products for a company that acts as a tech partner to hundreds of Australian organisations, both enterprise and government, the conversation around digital resilience, sovereignty and strengthening local infrastructure and networks has never felt more urgent – or more personal.

After more than a decade working closely with Datacom’s customers, I believe our sector stands at an inflection point. We must either double down on building trusted, regionally-owned technology infrastructure or risk losing strategic control to offshore interests and uncertain supply chains.

That’s also the message I’m hearing from enterprise customers and public sector agencies alike who are tasked with ensuring the availability of secure, digitally-delivered essential services.

Industry response: an emerging, strategic effort

The industry understands that the strategic environment has changed. Cyber incidents, geopolitical tension, and supply shocks have altered expectations from technical teams to boardrooms. Locally invested infrastructure must be a staple in our risk mix, not a last resort. Datacom’s long history in trusted payroll processing, government partnerships and resilient cloud services for some of Australasia’s biggest companies puts us in a unique position to help guide this shift.​

Datacom Infrastructure Products MD: “Sovereign technology is more than a buzzword. It’s about ensuring that, as data volumes surge and artificial intelligence becomes integral, our governments, enterprises and communities retain ultimate authority over their most sensitive information.”

The establishment of the National Security Alliance (NTSA) by the Tech Council of Australia is just one example of how industry is coming together to front-foot the issue and, as a founding member, Datacom is helping to steer an agenda that places local accountability, digital resilience, and strategic preparedness front and centre.​

The Australian Information Industry Association (AIIA), of which I am currently a Board member, is also addressing the issue through the National Security and Cyber Resilience PAN (Policy Advisory Network), which works to strengthen Australia’s digital infrastructure by advising on policies such as the Cyber Security Act 2024 and the Security of Critical Infrastructure Act 2018, including four submissions on cybersecurity strategy and standards in 2025.

Why sovereignty isn’t an abstract concern

Sovereign technology is more than a buzzword. It’s about ensuring that, as data volumes surge and artificial intelligence becomes integral, our governments, enterprises and communities retain ultimate authority over their most sensitive information.

The risks are real. Boards and business leaders are rightly asking: “Where is our data, who has access to it, and what happens when something goes wrong?”

The NTSA conversation that is getting underway extends to supply chain security, considering the disruptive impacts of emerging technologies like quantum computing, and exploring “friend shoring” opportunities with closely aligned nations.

For instance, we have seen customers choose to host their data in New Zealand, where we operate four data centres powered by 100% renewable energy, availing themselves of greener energy profiles and regulatory alignment, all while maintaining the trusted relationships and oversight they would expect from a regional partner.

Locally aligned standards also mean the decisions made about infrastructure – such as physical security and proximity to crucial facilities – are subject to the scrutiny and wisdom of those within our own borders. In Australia, our partnerships with companies like AirTrunk enable us to deliver critical hosting with a local lens.

Resilience in action: Datacom’s approach

Datacom combines regional infrastructure, security-cleared staff, compliance expertise and a “smart cloud” delivery philosophy that lets clients choose the most appropriate platforms for each business problem, paired with the right governance for the sensitivity of their data.​

We are also pioneering sovereign AI innovation. GPU-as-a-service is live in New Zealand and will soon be available in Australia, allowing sensitive public and private sector clients to undertake secure AI inference without fear of intellectual property (IP) leakage or breaching regulatory constraints. We’re building the foundation for fast, scalable access to advanced computing, where the data location and security wrappers are never an afterthought, but the central concern.

Building strength through alignment

Australia and New Zealand are geographically close – making trade faster, cheaper and more efficient – but we share much more than geography. At a foundational level we are politically aligned; stable democracies with shared values around key issues such as transparency and human rights. Our regulatory environments, economic ties, overlap in many sector profiles and cultural values make friendshoring not only feasible but highly advantageous. Our governments are beginning to recognise that the decisions made in IT strategy have consequences for sovereignty, competitiveness, and, ultimately, the national interest. 

Datacom works closely with numerous tech multinationals that are offering critical infrastructure and hyperscale public cloud services to our customers. That is not going to change. These providers are central players in the digital economy and take their responsibilities seriously.

But there is an urgent need, through initiatives such as the NTSA, to develop a blueprint that will help industry and policymakers navigate the clouded, contested future ahead. Our job as one of the region’s largest locally-owned technology companies is to use our expertise and our vendor-agnostic approach to deliver practical, scalable infrastructure capable of defending and advancing local interests, while retaining openness to international partners where it makes sense.

To ensure Australia maintains its tech sovereignty and the ability to drive decisions about its digital future, we need to seize the opportunity to set higher standards, build sovereign, sustainable infrastructure and take a smart, unified show approach across our region that delivers not just protection, but competitive advantage.

Sovereignty is about choices, and now more than ever, those choices must be made with eyes wide open.

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