Business · Companies · 1 hr ago
CDC warns inquiry about poor practices in Australia’s AI data centre boom
CDC Data Centres told a federal parliamentary inquiry into AI that Australia’s fast-growing data centre industry could attract operators seeking quick financial returns rather than building reliable infrastructure.
The company said communities have a right to question developments and backed government rules to distinguish good development from bad.
CDC had planned to build data centres with Firmus, but ended the partnership last week.
CDC said its approach to building critical infrastructure differed from Firmus’s, and that the companies’ business models had diverged.
CDC said it had never been involved in, or intended to be involved in, data centre developments in Tasmania.
Firmus separately cancelled its planned listing on the Australian stock exchange after failing to attract enough investor interest.
The inquiry is considering AI in Australia, but no next steps are stated.
CDC Data Centres warned a federal parliamentary inquiry that the artificial intelligence boom could attract operators seeking financial returns rather than building critical infrastructure.
The company said it ended its arrangement with Firmus after the two companies’ business models diverged.
CDC chief strategy officer Jack Dan said the company supports government rules to distinguish good development from bad development.
Firmus cancelled its planned public listing on the Australian Securities Exchange after failing to attract enough investor interest.
Dan said CDC had not been involved in, and never intended to be involved in, data centre developments in Tasmania.
- Who
- CDC Data Centres, represented at the inquiry by chief strategy officer Jack Dan, and Firmus.
- What
- CDC warned about poor practices among data centre operators and explained why it ended its arrangement with Firmus.
- When
- The inquiry took place before the article was published on 11 October 2026. CDC said it scrapped the deal the previous week.
- Where
- Australia; Dan spoke to a federal parliamentary inquiry into artificial intelligence.
- Why
- Dan said CDC and Firmus had different approaches to developing data centres and their business models had diverged.
This story does not have two clearly opposing sides.
For any sector of the economy that is experiencing significant growth, it will attract a number of players that are entering that sector in order to get the financial outcomes, as opposed to getting the business outcomes.
We have been very, very clear in our in putting forward the position that doing infrastructure shouldn’t be a trade-off to doing infrastructure well.
CDC is very much about critical infrastructure, very significant resilience, 100 per cent availability.
Tasmania could have been part of that, but Firmus has a very different approach to developing data centres compared to CDC.
CDC partnered with Firmus to develop data centres, when Firmus was more focused on Australia and creating sovereign AI capability.
CDC scrapped its arrangement with Firmus.
Firmus cancelled its planned public listing on the ASX after failing to attract enough investor interest.
Stockhead published its report on CDC’s comments to the federal parliamentary inquiry.
- Inquiry
- Federal parliamentary inquiry into artificial intelligence
- CDC representative
- Jack Dan, chief strategy officer
- CDC arrangement
- Planned data centre developments for Firmus across Australia
- CDC infrastructure standard
- 100 per cent availability
- Firmus listing
- Planned public listing on the ASX; cancelled after insufficient investor interest
- Tasmania
- CDC said it had not been involved in, and never intended to be involved in, developments there
Sources
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