The federal government’s flagship manufacturing fund has invested $20 million in a local cloud computing provider, bringing it to more than $100 million invested in just over a month.
The National Reconstruction Fund Corporation (NRFC), the entity created to guide the Labor government’s landmark $15 billion manufacturing fund, has made a $22.5 million investment in Vault Cloud, a Canberra-based data centre and hyperscale cloud computing provider.
It marks the first investment made under the fund’s defence capability stream.
The fund has now invested more than $100 million in Australian companies in just over a month, after legislation launching the fund was passed in March 2023.
Vault Cloud has worked with the federal government for several years, with its services integrating multiple layers of advanced security measures in order to protect classified data held by the government and defence sector.
The funding will be used by the company to deliver new security capabilities and services, including in artificial intelligence, deployed tactical cloud and the development of its ‘Top Secret’ Cloud.
Cloud sovereignty
Minister for Industry and Science Ed Husic said the investment in Vault Cloud will ensure greater sovereign control over critical advanced cloud computing technology.
“This investment will build our capabilities in the cutting-edge tech needed to keep Australian data safe,” Husic said.
“The National Reconstruction Fund (NRF) is backing Aussie firms like Vault to scale Australia’s critical cloud computing service.
“Through the NRF we’re making our defence industries stronger by backing Aussie know-how.”
Vault Cloud CEO Rupert Taylor-Price also welcomed the investment.
“Vault is proud to provide the secure infrastructure that supports the nation’s defence and industrial goals,” Taylor-Price said.
“With the NRF’s support, we are poised to scale our capability and help meet Australia’s strategic national security demands.”
National Reconstruction Fund Corporation chair Martijn Wilde said the investment is all about shoring up Australia’s national interests.
“As the first investment in the NRFC’s defence capability priority area, Vault is an excellent example of the ways in which the NRFC can invest to protect Australia’s national interests,” Wilde said.
The investment in the local data centre company comes just months after the federal government announced a $10 billion, decade-long partnership between the Australian Signals Directorate and Amazon Web Services to develop a bespoke cloud environment to handle top secret Defence and intelligence data.
This deal was criticised at the time by local industry, with concerns raised about the use of the term “sovereignty” and that the huge deal was awarded to a large overseas multinational rather than a local firm.
Manufacturing fund gets moving
After making its first investment in November last year, the NRF has now dished out more than $100 million to four companies.
This was more than 18 months after legislation creating the fund was passed by Parliament.
The NRF’s first investment was $40 million in Queensland-based manufacturer Russell Mineral Equipment.
Weeks later, a $13 million equity stake was announced in local quantum technology company Quantum Brilliance to help the firm build a foundry for its diamond-based quantum devices.
It has also invested $25 million in South Australia-based telecommunications provider Myriota to further develop its network technologies and infrastructure.
