Victoria was ranked dead last, yet a $60b tech giant just made Melbourne its fastest-growing hub
“In tech, you go to where the talent is. Melbourne and Seattle are growing the fastest of any two Atlassian regions in the world,” Cannon-Brookes said. “That’s why we’re investing in growing those areas. We are very thoughtful about the talent, and that’s more important for us than anything else.”
Premier Jacinta Allan is betting heavily on that tech-sector appetite. In her State of the State address to the Committee for Economic Development of Australia on Thursday, she unveiled plans to make Victoria the country’s hub for data centres, with a pipeline the government estimates could be worth $25 billion in capital expenditure.
Premier Jacinta Allan.Credit: Christopher Hopkins
The government will spend $5.5 million on a sustainable data centre action plan to determine where facilities should be located, and $8.1 million on “AI career conversion” to retrain workers displaced by the technology.
Allan said AI advancements could add $30 billion to the gross state product over the next decade, while acknowledging a “delicate balancing act” to protect affected workers.
But tension remains between the government and business groups over workplace policy. Allan told the CEDA lunch she would push ahead with legislation to enshrine working from home as a legal right, despite opposition from some businesses.
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“I’ve listened to their views. I respect them. I haven’t changed my mind,” she said. “And in the years to come, I think those businesses will change theirs.”
Cannon-Brookes, whose company pioneered remote work through its “Team Anywhere” policy, was lukewarm on the approach.
“I would think that any government mandating work from home seems like an odd thing. Any government mandating working from an office would equally be odd,” he said. “I think it’s probably best if businesses choose.”
About a quarter of Atlassian’s Victorian workforce now comes into an office at least occasionally, and the new 1,848-square-metre Melbourne space is proving popular. Daily occupancy averages around 75 per cent, with early weeks peaking close to 100 per cent.
The executive was candid that competitors abandoning flexible work only helps Atlassian’s recruitment.
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“In a purely selfish way, return-to-work mandates are good for us,” he said. “We’d like everyone to do them, except for us.”
He acknowledged remote work isn’t right for every business, however. “I totally get why, if you’re a 10-person start-up, working from home is really hard. Can’t build any culture,” he said.
“It’s most important for a business owner, leadership team, management, whatever, to choose what works for them.”
Atlassian’s Melbourne investment is still modest compared to its flagship project: a 40-storey, $1.4 billion headquarters under construction at Sydney’s Tech Central, set to open in 2026. Could Victoria attract similar investment?
An impression of Atlassian’s planned building, the centrepiece of the city’s new tech hub.
Cannon-Brookes said it was “totally possible” but noted the Sydney project had been a 15-year journey. And Melbourne’s tech scene lacks the density that makes such hubs work.
“All my friends with companies here, all seem to get in a cab and drive somewhere,” he said. “They don’t seem to be close to each other.”
