A new data centre will be built in Canberra in response to increasing demand for cloud and cyber security services by government agencies.

The new Intellicentre 5 (IC5), being delivered by cloud and government security vendor Macquarie Telecom Group, will sit alongside the company’s existing IC4 cloud facility.

Construction will begin next month with the $17 million first stage slated for completion by December.

Managing Director of Macquarie Government Aidan Tudehope says there will be no returning to the “normal” after COVID.

“Government departments need to have clarity over data sovereignty – who controls the data, where does it reside, and who has access,” he said in a statement.

He said the IC5 South Bunker at Macquarie Data Centres’ Canberra Campus will also provide “a safe haven for agencies that don’t want all their eggs in one basket, whether that’s splitting data between our facilities or other providers”.

The announcement comes after Macquarie last year signed a $20 million deal to provide cyber security services for the ATO.

The new data centre will be funded via federal instant asset write of and business investment stimulus measures, which provide accelerated capital allowances deductions for plant, equipment and other assets.

Assistant Finance Minister Zed Seselja says the company’s investment will create jobs and foster skills.

“This kind of investment, backed by the Government’s stimulus measures, is essential to growing Australia’s economy after the pandemic,” he said.

Defence ERP deal announced

In other IT news, the defence department will use Microsoft’s Azure cloud capabilities to host its new enterprise resource planning platform.

The integration of Defence’s SAP/4HANA platform on Azure marks the department’s first significant migration to the cloud.

The migration is set to be finalised by 2022 with the aim of improving reporting and boosting logistics and maintenance capability.

It will support 85,000 users and provide access to defence personnel in Australia and overseas, as well as providing near-real time view of critical information.

The announcement on Thursday comes after an APSI report warned Australia’s security community needs to urgently move to the cloud or risk being tied to legacy technology.

Managing director of Microsoft Australia, Steven Worrall, said the transformation would enable better decision making.

“ERP will modernise, integrate and transform Defence’s approach to managing its finances, human resources, logistics, engineering, maintenance and estate,” he said.