NECA backs national AI framework and calls for urgent electrical apprenticeship plan

The National Electrical and Communications Association has welcomed the Prime Minister’s commitment to establishing national standards for artificial intelligence and large data centres, while warning that the opportunity cannot be realised without an immediate expansion of Australia’s electrical skills pipeline.

NECA National Chief Executive Officer Stewart Joyce said he commends the Prime Minister for correctly recognising that artificial intelligence was not simply a digital or software issue.

“The Prime Minister is right that artificial intelligence has a substantial physical and material footprint. Every major data centre depends on new electricity generation, grid connections, substations, communications systems, energy management technology and highly skilled licensed electrical workers,” Mr Joyce said.

“Australia cannot establish sovereign artificial intelligence capabilities without ensuring that it has the electrical workforce required to build, connect, maintain and operate the supporting infrastructure.”

The Prime Minister’s speech proposed mandatory national standards for large data centres, including requirements relating to energy, grid connection costs, renewable generation, water use, planning and investment in skills and training. It also stated that Australia should not settle for a temporary increase in construction activity but should use the opportunity to create a new generation of net contributors, offering secure and productive jobs.

Mr Joyce said these objectives must be supported by a dedicated national electrical apprenticeship growth and retention plan.

“Government policy must focus on increasing the total number of people entering the electrical trade. This requires targeted support for first-year apprentices, when supervision and training costs are highest, and apprentice productivity is still developing,” Mr Joyce said.

“Mature age electrical apprenticeships are also becoming increasingly attractive to people seeking a secure and rewarding career change. However, the higher employment costs associated with mature-age apprentices can make it difficult for small and medium electrical contractors to offer these opportunities, particularly during the early years of training.”

“Government and industry should develop a targeted policy response for the data centre construction pipeline that addresses the cost gap between junior and mature-age apprentices. This should include time-limited wage support for employers that create new mature-age electrical apprenticeship positions and retain those apprentices through to completion.”

Mr Joyce said the policy must also protect the broader electrical contracting industry from losing experienced apprentices to major data centre projects after small and medium businesses have carried the cost of their early recruitment, training and supervision.

“Data centre developers and major contractors will often have the financial capacity to offer higher wages to second, third and fourth year apprentices,” Mr Joyce said.

“Without appropriate safeguards, this risks drawing apprentices away from the small and medium businesses that recruited them, trained them and supported them through the costliest stages of their apprenticeship.”

“Australia cannot build its data centre workforce by transferring apprentices away from the businesses delivering housing, commercial construction, maintenance, renewable energy and essential infrastructure.”

NECA is calling for a coordinated data centre electrical apprenticeship framework.

The framework should require major data centre developers and principal contractors to demonstrate that their workforce strategies will increase the overall electrical skills pipeline, rather than relying predominantly on the recruitment of existing second, third and fourth year apprentices from smaller contractors.

“Data centre proponents that benefit from accelerated approvals, public infrastructure investment or government support should have corresponding workforce development obligations.”

These plans should also include new apprenticeship commencement targets, mature-age apprenticeship pathways, greater female participation, local contractor participation, engagement with industry-based registered training organisations and group training organisations, apprentice retention measures and transparent reporting on workforce outcomes.

“Investment approvals and workforce planning cannot continue to operate as separate processes,” Mr Joyce said.

“If governments approve major data centres, renewable generation, transmission infrastructure and other electricity-intensive developments without expanding the electrical workforce, projects will compete for the same limited pool of electricians and apprentices.”

“That will increase costs, delay delivery and place further pressure on housing, construction, energy and essential infrastructure.”

“The Government has correctly identified an opportunity of national significance. The next step is to ensure that skills policy matches the scale and urgency of the investment pipeline,” Mr Joyce said.

“Artificial intelligence may represent the future of the economy, but the electrical workforce will be among the people who physically build that future.”