This is now one of the primary constraints on capital deployment into the sector.The issue is not simply generation capacity. It is also about process complexity and infrastructure co-ordination and timing. Investors and developers are required to navigate fragmented approval pathways, inconsistent planning frameworks between States and long lead times across connection and transmission infrastructure.Much of this occurs sequentially rather than in parallel, creating delays, duplication and cost uncertainty.Planning systems were not designed to allow for the deployment of digital infrastructure at the scale and pace now required. Developers are often managing unclear asset classifications, lengthy rezoning processes and approvals for associated infrastructure such as power and water connections. Emerging community resistance around large infrastructure projects is also adding complexity to planning processes, making community engagement an increasingly important part of development strategy.All of this affects how capital behaves.Capital does not disappear because of uncertainty, but it may become more cautious, more expensive or flow towards jurisdictions where delivery pathways are clearer and more predictable. Australia is competing globally for this investment, and competing markets are increasingly offering faster approvals, clearer grid access and stronger co-ordination between infrastructure planning and development.Small improvements in certainty can unlock significant amounts of capital.Where investors can better understand connection timelines, planning pathways and delivery obligations, projects become easier to finance and risk becomes easier to allocate. That is particularly important in data centres, where developers often retain a much higher proportion of delivery and operational risk than in more traditional infrastructure sectors.Hyperscale technology customers have significant purchasing power, which means developers are frequently exposed to construction timing, grid uncertainty and supply chain risk while having limited ability to negotiate downstream customer timing requirements.That imbalance affects the cost of capital and shapes investment decisions across the sector.It is also changing how projects are financed.Traditional infrastructure capital typically enters projects once assets have been substantially de-risked. In data centres, however, key risks emerge much earlier in the development cycle. As a result, financing structures are evolving to meet the risk lifecycle, include combinations of equity, convertible instruments, subordinated debt, project finance and later-stage capital recycling models where stabilised assets are sold down to longer-term investors.The clearer and more manageable the risk profile becomes, the more efficiently capital can move through the system.This means the focus should not simply be on creating new policy settings. It should be on improving certainty and co-ordination across existing systems.Faster and more transparent grid connection pathways, better alignment between energy policy and infrastructure planning, and more integrated approvals processes would significantly improve Australia’s competitiveness as a destination for digital infrastructure investment.The stakes extend beyond economics alone.Without sufficient domestic data centre and AI compute capacity, Australia risks becoming increasingly dependent on offshore digital infrastructure. That has implications not only for investment and economic growth, but also for long-term resilience, sovereignty and strategic capability in an increasingly digital economy.Australia has the opportunity to play a leading role in the next phase of global digital infrastructure growth. The demand and capital are already there. The question is whether we can create the certainty and co-ordination required to unlock it.Gavin Smith is partner and head of technology, media & telecommunications, Allens.