Emerging tech trends in Australia: What to expect in 2025

In 2024, the pace of technological change has been relentless, and 2025 is set to be no different.

Organisations and leaders across industries must stay ahead of these shifts to unlock the full potential of emerging technologies and overcome some of the challenges they present to drive growth and manage risk.

At Equinix, we remain dedicated to enabling this continued evolution by providing resilient digital infrastructure and the services that organisations need to thrive. As we look to 2025, here are four trends expected to shape Australia's business and technology landscape, from advances in cybersecurity to the nation's potential emergence as a global hub for AI training.

Quantum Momentum
Quantum technology is gaining momentum. Although we're still a few years away from full-scale commercialisation, enterprises are considering use cases for quantum, which will supplement existing high-performance compute systems and networks.

One business model enterprises will be able to benefit from is Quantum Computing as a Service (QCaaS), which can overcome the cost and complexity of buying, installing and maintaining a quantum computer. In fact, there are different approaches to QCaaS that give businesses flexibility as they look to unlock quantum computing capabilities. For example, Equinix is collaborating with Oxford Quantum Circuits in Japan to help lower the barrier to entry for commercial quantum use cases via co-location and interconnection services.

Further, the anticipated impact of quantum computing on current encryption methods will become a driver of greater investment in cyber defences to mitigate risks, with organisations expected to accelerate their transition to Post-Quantum Cryptographic algorithms. The urgency for quantum preparedness is highlighted by new standards from the United States National Institute of Standards and Technology for post-quantum cryptography, which stress the importance of building cryptographic agility.

With the rise of 5G, IoT, and sensor-heavy environments, the volume of encryption keys required is set to skyrocket. Our partners, like QuintessenceLabs, are pioneering technologies that support current and emerging encryption standards, enabling organisations to protect their data and ensure uninterrupted operations. Inaction will expose organisations to nation-state actors, who are harvesting encrypted sensitive data now to decrypt later.

Securing Sub-Sea Cable Infrastructure
Moving internet traffic over trusted connections has become a cybersecurity requirement for businesses and a matter of national security for governments around the world, and Australia is in a uniquely strategic position to help make this happen.

Routing through Australia allows subsea cable operators to avoid risks due to geopolitical conflicts and natural disasters in the Asia-Pacific region. This makes us one of the safest, most reliable locations for transpacific digital traffic on the United States's West Coast.

In fact, Australia's reliance on subsea cables is increasing, with more than 20 operational and six more in development. These cables are vital for low-latency data traffic, particularly as alliances like AUKUS and the Quad recognise their importance for government and military communications. However, by nature of their critical function supporting the digital economy, subsea cables face vulnerabilities from both physical and cyber threats, which requires a comprehensive strategy for their protection.

The Australian Strategic Policy Institute (ASPI) has underscored the importance of collaboration between countries and hyperscalers to establish resilient strategies for subsea cables. Additionally, the Australian Government's Cable Connectivity and Resilience Centre initiative is designed to work with governments and industry across the Indo-Pacific to support the effective development and management of undersea cables. 

These collaborations are essential for ensuring the secure and reliable flow of data traffic, aligning with Australia's broader security, foreign-policy, economic development and cyber objectives.

Australia the next AI Training Hub
As demand for cloud and AI computing grows, data centres, which consume about 2 per cent of global electricity, are becoming central to sustainable technology infrastructure. With increased investment in these facilities, Australia is well placed to capitalise and become a preferred location for businesses and hyperscalers to run their power intensive AI training models.

Australia is uniquely placed to support the next wave of AI training demand. Our abundance of solar and wind resources coupled with ever improving battery storage make us self-sufficient to power energy-intensive AI workloads more sustainably. Add to this our long standing membership in the Five Eyes intelligence alliance, which will be increasingly important in where models are trained, it's likely Australia will become a key global centre for some of these large AI training models. These same sentiments were recently echoed in an interview by former Google executive Eric Schmidt.

With the challenges of sourcing appropriate power requirements, we can expect greater consideration on where future data centre sites are built, which in turn, is leading to continued discussions on the merits of nuclear in the energy mix. 

That aside, Australia can meet the growing demand for AI capabilities and advance environmental goals by reducing the carbon footprint of data-intensive processes. Australia has a significant opportunity to become a leader in AI training, attracting both investment and talent to the country.

Growth in Public Sector Technology Investment
With the rising need to support a range of priorities, including zero-trust cybersecurity environments, new regulations and the deployment of AI and machine learning, the public sector is expected to increase its IT spending next year at state and federal levels. The federal government committed $2.8 billion to technology systems and policy development in its May budget, and state governments continue to modernise services to help meet growing citizen expectations, and uplifting cyber defence capabilities remains an overarching trend across all states and territories.

With sovereignty and security as guiding principles, the public sector is poised to strengthen its capabilities to protect critical infrastructure and improve service delivery. Investment growth signals a larger commitment to harnessing technology for social and economic growth while safeguarding national interests.

Conclusion
In 2025 and the years beyond, these trends will continue to reshape Australia's technology landscape and investment priorities. At Equinix, we are committed to supporting organisations as they navigate these developments and will continue to invest in digital infrastructure that creates exceptional long-term value for our customers and partners and a more sustainable and prosperous future for all.