Victoria is making its play to become Australia's "AI capital" with a six-pillar strategy targeting $30 billion in economic value over ten years. Minister Danny Pearson launched the AI Mission Statement on January 30, setting up a direct challenge to NSW's data centre ambitions.
The centrepiece is a $5.5 million Sustainable Data Centre Action Plan designed to unlock $25 billion in private investment. The state is using transport, energy, and water data to identify viable sites - a practical approach that acknowledges infrastructure constraints that have derailed previous projects. NEXTDC's $2 billion Fishermans Bend digital campus suggests some early traction.
The workforce component allocates $8.1 million for the Digital Jobs - AI Career Conversion program, retraining existing workers for AI roles. This is Victoria's third attempt at large-scale tech workforce development in five years. The previous two taught them something about implementation challenges.
What this means in practice: Victoria is leveraging Melbourne's existing cluster of 188 AI firms - 22% of Australia's concentrated AI sector - rather than building from scratch. The strategy spans investment attraction, digital infrastructure, local innovation, talent development, ethical frameworks, and public sector adoption.
The real test comes when companies start making investment decisions. Victoria's pitch includes ethical AI guidelines and worker protections, addressing risks that previous tech initiatives overlooked. Premier Allan emphasises "fair, transparent" deployment, language that matters for government procurement and enterprise adoption.
Worth noting: The $30 billion GSP projection runs through 2036. That's a long timeframe with significant assumptions about AI adoption rates, infrastructure delivery, and Victoria's ability to compete with other states and international locations.
For CTOs evaluating Australian operations, Victoria's data centre site selection methodology and the evolving ethical framework are worth monitoring. The state's willingness to use government data to solve infrastructure planning problems signals a more sophisticated approach than previous "build it and they will come" strategies.
The interstate competition is useful - it's forcing both Victoria and NSW to sharpen their value propositions beyond tax breaks. We'll see which approach attracts actual deployments versus announcements.