Atlassian has laid off 150 people, mostly in customer support. The news has made headlines and underscores a point made recently by ACTU Secretary Sally McManus: corporations should treat AI not as a hostile agent, but as an opportunity to improve the productivity of their workers. Left unchecked, the free-for-all approach to AI integration risks producing damaging unintended consequences - from wild volatility in technology stocks to surging energy demand.
The Atlassian redundancies are a textbook example of how not to restructure a workplace. The ‘cold turkey’ approach breeds constant anxiety among staff, where any day could be the day they are dismissed. An anxious workforce is a less productive workforce.
Scott Farquhar, Atlassian co-founder, recently outlined at the National Press Club his vision for AI in Australia, with a strong focus on data centres. Here lies a different kind of opportunity - one that could marry AI growth with Australia’s renewable energy advantage.
Although Australia ranks only 50th globally by population, it is a significant player in data centre capacity, with over 300 facilities as of early 2025. Around 80% of this capacity is concentrated in Sydney and Melbourne. While the US still dominates on a per-capita basis, Australia’s footprint is high for its size, and demand is growing. Not all data centres are dedicated to AI, but the global expansion of AI is inseparable from the rapid growth of these facilities, along with their enormous energy and water needs.
Farquhar’s vision is for Australia to become a regional data centre hub, developing sovereign capacity that could place it among the world’s leaders in AI infrastructure. He has even floated the idea of “exporting energy through data” - turning renewable electricity into AI services for global markets. The appeal is obvious: the US’s expansion would rely heavily on fossil fuels, while even China’s aggressive build-out of renewables is still falling short of demand.
Sooner or later, consumers will demand AI services powered entirely by renewables. Australia, with its near-limitless potential for solar and wind energy, is better placed than most to deliver. It already operates desalination plants - many standing idle - that could provide water for cooling without straining natural supplies. The country is a world leader in rooftop solar and has seen fierce competition drive down installation costs well below US and Canadian levels. Yet much of this renewable capacity is poorly stored or integrated into the grid, leaving large amounts underused.
Farquhar’s mantra of “export megawatts as megabytes to earn megabucks” might sound glib, but it reflects a genuine untapped potential. Combining our vast coastline, improving energy storage, and using desalination to support cooling could decentralise data centre development, spreading prosperity to regional Australia. Latency would rarely be an obstacle - most general AI systems do not require the ultra-low-lag performance needed for gaming or live video - and network congestion in US hubs already points to the value of dispersed infrastructure.
Handled well, AI could enhance productivity without the human cost of abrupt layoffs, while positioning Australia as a global leader in 'green AI'. Handled poorly, it risks breeding worker anxiety, wasting renewable potential, and missing a once-in-a-generation chance to lead.
A transition to AI without the climate cost and labour pains
Atlassian’s layoffs reveal the risks of poorly managed AI transitions — but Australia’s renewable energy advantage could make it a leader in sustainable, decentralised data centres.
Atlassian’s sudden layoffs show how abrupt AI-driven restructuring breeds anxiety and undermines productivity. Yet Australia stands at the threshold of a rare opportunity: to pair AI growth with its vast renewable energy capacity, decentralising data centres and creating a global market for “green AI.”