'We see how sophisticated actors can use cyber techniques to steal information and if you combine that with ownership of companies which gives intelligence agencies access to both hardware and software, well that's a vulnerability,' Mr Jennings said. The executive director of the Australian Strategic Policy Institute, Peter Jennings, said data management was a rapidly changing field.

Global Switch stands by 'highest levels of security'

Mr Morrison said Defence had made 'an entirely appropriate decision' to remove its data from the centre by the end of the decade. Planning for that is already underway and could cost up to $200 million. 'They got a very clear message from the Government about how the Government would feel about being incorporated into that global deal,' Mr Morrison said.īut in a sign that Defence now questions the wisdom of outsourcing sensitive data, the ABC has been told it will shift it all back into government hands once the contract with Global Switch expires in 2020. Treasurer Scott Morrison said the Government 'acted to ensure the integrity of our foreign investment process when it came to that data centre'. The Government then imposed strict new conditions on the company, including seeking an assurance that its Australian arm would continue to be 100 per cent owned and operated by Aldersgate Investments. The ABC has confirmed that the ownership change triggered a Foreign Investment Review Board investigation. The lead investor is the Jiangsu Sha Steel Group, described as the largest private steel enterprise in China.įormer British defence secretary, Sir Malcolm Rifkind, was among senior politicians and experts in the United Kingdom who raised security concerns when the deal was being forged. The investors were assembled by Li Qiang, who owns shares in one of China's leading data centre companies, Daily Tech.

The ownership of Global Switch changed in December when the London-based parent company, Aldersgate Investments, accepted $4 billion in cash for a 49 per cent stake from Chinese consortium Elegant Jubilee. The centres have massive storage capacity, multiple power sources, high-bandwidth internet connections and an Australian Signals Directorate-accredited gateway which allows secure access by public sector agencies.

Global Switch owns two high-security data centres in Ultimo where the company holds classified government information, including sensitive Defence and intelligence files. The department is preparing to spend up to $200 million on the move, despite assurances from the company, Global Switch, that its files are secure.

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