TMT Trends 2026: Digital Infrastructure And Emerging Technology Regulation

Looking ahead to 2026, the technology, media and telecommunications (TMT) sector is set to experience even greater acceleration in innovation and regulatory change, building on the rapid developments witnessed in recent years.

In this Insight, we set out key areas of upcoming reform and regulation across the TMT sector in Australia, with a particular focus on digital infrastructure and emerging technologies, including:

• artificial intelligence;
• data centres;
• telecommunications infrastructure; and
• blockchain and digital assets.

Artificial intelligence

It is expected that Australia will regulate artificial intelligence (AI) via existing laws, not a dedicated 'AI Act', with targeted interventions. The National AI Plan (published December 2025) outlines three key priorities for 2026: AI infrastructure, economy-wide adoption and skills, and proportionate risk management. Businesses should prepare by assessing current AI use against existing legal frameworks and monitoring sector-specific guidance rather than awaiting broad AI legislation.

Regulatory action will likely concentrate on specific harms and high-impact use cases, an overview of which has been set out below:

Non-binding measures will continue to set the baseline for 'responsible AI', including:

• the National AI Centre's (NAIC) new Guidance for AI Adoption (published October 2025) is now the core reference for responsible AI in Australia, replacing prior safety standards. It includes 'Foundations' (for smaller/early adopters) and 'Implementation Practices' (for larger/mature organisations), outlining six key practices: accountability, impact understanding, risk management, transparency, testing/monitoring, and human control; and
• the Office of the Australian Information Commissioner provides two sets of non-binding guidance for applying Australian Privacy Principles to AI: one for developing / training generative AI, and another for using commercial AI tools. Both emphasize 'privacy-by-design', proactive governance, and careful personal information handling.

For 2026, boards can anticipate a tightening regulatory patchwork: sector-specific obligations, criminal prohibitions for egregious harms, AI-specific workplace protections and strengthened privacy settings. Organisations should monitor for developments and update their AI compliance programmes as required. Organisations should review AI governance, risk, and compliance against the NAIC Guidance for AI Adoption. Aligning with this non-binding guidance will be crucial for trust and meeting stakeholder/regulatory expectations, especially for advanced AI deployments.

More generally, boards should continue to consider how existing legal frameworks, including privacy, consumer protection, intellectual property, corporations, anti-discrimination, employment and other sector-specific laws (e.g. the APRA Prudential Standards) apply to and regulate their development, deployment and use of AI technologies.

Data centres

According to CBRE Research, Australia's data centre capacity has the potential to rank third globally, with live build-out placing it in the current top 10. Data centres are now the second most preferred alternative asset class for investment in Australia in 2025, with demand being expected to surge as AI adoption and cloud computing accelerate, supported by Australia's proximity to Asia, skilled workforce, and abundant renewable energy and land.

Uninterrupted power is critical to meet uptime requirements for data centres. Traditionally, centres draw peak power from the grid, backed by onsite batteries, gas, or both. AI is pushing energy needs sharply higher: AI-ready racks can require up to 80 kW each, compared with around 15 kW for traditional facilities. This is increasing pressure on the national grid. At the same time, growing social and regulatory expectations, including potential emissions reporting to the Clean Energy Regulator under the National Greenhouse and Energy Reporting Scheme, are driving a transition to alternative green energy sources, including renewables and nuclear options.

From a commercial perspective, most data centres currently access green power through power purchase agreements and offsets rather than sourcing it directly. However, direct sourcing and co-location models are gaining traction globally. For instance, Verne's Iceland data centre is powered entirely by geothermal and hydro, and Engie's integrated wind and solar generation and storage site in regional NSW is seeking a co-located data centre. In the coming year, operators should prepare for a rapidly evolving regulatory environment that prioritises sustainability, energy efficiency and alignment with Australia's national interests.

The National AI Plan (also discussed above in 'Artificial Intelligence') identifies smart infrastructure as a pillar for unlocking AI's potential and references the a national data centre strategy currently being developed by the Australian Government. The forthcoming principles are expected to balance technological capacity, energy resilience, AI sovereignty and national security, while fostering investment in the sector. In tandem with this increased focus on green energy, it is expected that the proposed strategy will set clear sustainability expectations, such as integrating renewable energy sources and adopting efficient cooling technologies, with the government considering streamlined approval processes for projects that meet these standards.

Telecommunications

The Telecommunications Legislation Amendment (Universal Outdoor Mobile Obligation) Bill (the UOMO Bill), introduced 27 November 2025, proposes a new statutory regime to ensure that outdoor mobile coverage is reasonably available to all people in Australia on an equitable basis. If passed, the UOMO Bill will initially designate Telstra, Optus and TPG as the primary providers responsible for delivering mobile coverage nationwide, with the possibility for others to be designated in future. The regime is expected to take effect from 1 December 2027, with preparatory standards and rules likely to emerge over the course of this year and next.

In its current state, the regime will initially only apply to voice and SMS services, although there is provision for the Minister for Communication to expand its scope to include additional services (such as data) in the future. The proposed legislation would enable the Minister to establish binding standards, set minimum performance benchmarks, and introduce rules governing the supply, quality, reliability, and pricing of mobile services. It is anticipated that enforcement of these requirements will be delegated to the Australian Communications and Media Authority (ACMA).

Importantly, the UOMO Bill imposes obligations solely on designated providers and does not extend to satellite service operators. Each provider bears individual responsibility for compliance with the regime; the failure of one provider does not relieve others of their obligations. Providers must notify the Minister and the ACMA if unable to meet obligations and may be directed to inform customers of changes.

The coverage requirements contained in the UOMO Bill are limited to outdoor areas on a nationwide basis, subject to certain exclusions (such as the Australian Radio Quiet Zone in Western Australia).

Blockchain and digital assets

From a financial services perspective, 2025 saw significant regulatory developments in Australia's blockchain and crypto landscape, with:

• the introduction into the Australian Parliament, in November 2025, of the Corporations Amendment (Digital Assets Framework) Bill 2025 (the Digital Assets Bill); and
• targeted regulatory relief from the Australian Securities and Investments Commission (ASIC) for distributors of stablecoins.

Digital Assets Bill

The Digital Assets Bill aims to modernise Australia's financial services regime by providing a clear legal framework for businesses operating in the digital asset sector. The Digital Assets Bill has a 12-month commencement period after Royal Assent to facilitate industry transition and includes:

• new definitions for 'digital tokens', 'digital asset platforms', and 'tokenised custody platforms';
• requirements for operators of digital asset platforms and tokenised custody platforms to hold an Australian Financial Services Licence (AFSL);
• robust standards for the custody and safeguarding of client assets, including segregation of client funds, minimum capital requirements, and enhanced disclosure obligations;
• expanded powers for ASIC and the Minister to oversee digital asset platforms, including the ability to make product intervention orders, set minimum standards, and issue prohibition declarations where necessary to protect consumers and market integrity; and
• exemptions from licensing for operators whose total market value of transactions does not exceed $10 million over a 12-month period and exemptions for businesses where digital asset activities are in the ordinary course of an otherwise primarily non-financial services business.

Stablecoin regulation

Australia's approach to regulating stablecoins is rapidly maturing. The Digital Assets Bill will require all stablecoin issuers captured to hold an AFSL.

In the interim, ASIC has issued targeted relief instruments in respect of distributors of stablecoins from AFSL, market, and clearing and settlement facility licensing requirements.

Separately, in Q1 2026 the Reserve Bank of Australia (RBA) will report stage 1 findings from its 'Project Acacia', examining how various types of digital assets and related infrastructure, such as central bank digital currencies, could facilitate the growth of wholesale tokenised asset markets in Australia.

In 2026, industry participants should monitor the Digital Assets Bill's progress through Parliament and regulatory updates from the Australian Treasury, ASIC, and Australian Prudential Regulation Authority, and review their business models to assess potential capture by the new regime. This may include assessing their eligibility for current ASIC relief, preparing for future licensing under the Digital Assets Bill, and staying alert to regulatory updates, including the RBA's Project Acacia findings.

This article was co-authored by Rachael Rozengurt.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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