SYDNEY, 3 SEPTEMBER 2026 – New South Wales will need 75,500 more technology professionals by 2035, according to ACS Australia’s Digital Pulse 2026, prepared by Deloitte Access Economics. The state’s technology workforce, already the largest in Australia at 352,800 people, is forecast to reach 428,300.
The demand is arriving faster than the assurance. Nineteen data-centre projects worth about $50 billion are moving through the NSW Investment Delivery Authority. The Government’s consultation paper records about 28 gigawatts of network connection requests against forecast demand of 7.5 to 10 gigawatts. In August, the NSW Auditor-General found that fewer than half of audited agencies comply with the state’s Cyber Security Policy, that agencies self-reported 128 significant, high, or extreme cyber risks in 2025, and that AI governance is not keeping pace. As AI governance continues to evolve, one thing is clear: strong systems depend on skilled, capable people.
“New South Wales is attracting one of the country’s largest concentrations of AI and digital infrastructure investment. At the same time, the Auditor-General’s findings show why cyber capability cannot afford to lag behind. The infrastructure is moving quickly, and the workforce needs to keep pace. Sovereign capability depends not only on what we build, but on having enough skilled professionals to secure, govern and operate it,” said Dr Prins Ralston, ACS Chief Executive Officer.
The report also finds New South Wales has already built the answer the rest of the country is being told to copy. Its Digital Skills and Workforce Compact, launched in November 2023 to tackle a shortfall of 85,000 workers, asks employers to commit that 20 per cent of entry-level digital hires will come through alternative educational pathways by 2030. Fifty-nine organisations have signed. Digital Pulse 2026 recommends that commitment be adopted nationally.
“New South Wales has already taken an important step in the direction this report recommends. Fifty-nine employers have committed to sourcing one in five entry-level digital hires through alternative pathways by 2030. The missing piece is measurement. ACS already assesses technology professionals against an international standard, and we are ready to help track progress so that commitment translates into real outcomes,” said Dr Ralston.
Nationally, Australia’s technology workforce fell 0.3 per cent to 967,000 in 2025 even as the sector’s contribution grew 5 per cent in real terms to $142 billion. Digital skills across the wider economy were worth $476 billion. Seventy per cent of technology-worker time is now affected by AI, but only 7 per cent of Australians demonstrate advanced AI literacy.
The warning comes as yesterday’s GDP figure showcase Australia’s tech-heavy industries continue to expand, with Information Media and Telecommunications growing 6.1% over the past year and Professional, Scientific and Technical Services up 4.8%, even as national productivity has declined.
With Western Sydney International Airport opening to passengers on 25 October, freight operations already underway and construction on Bradfield’s second building starting this year, New South Wales is entering a major new phase of growth. Digital Pulse finds the state will need an additional 75,500 technology workers by 2035 as digital infrastructure, advanced industries, and the Western Sydney transform the state’s economy
Digital investment driving demand
Digital Pulse found NSW demand in 2025 included 38,800 programming and software roles, 31,000 cloud and web roles, and 20,100 data and analytics roles. Demand is expected to continue growing as NSW attracts investment in data centres, advanced manufacturing, and emerging technologies, while AI adoption accelerates across industries. The NSW Government is also targeting nearly $30 billion in additional investment and almost 100,000 additional jobs from innovation-intensive businesses by 2035 through its Innovation Blueprint.
ACS President Beau Tydd said NSW had an opportunity to translate major investment into lasting capability and high-value careers: “The infrastructure is being built, investment is arriving, and new industries are emerging. The next piece is making sure people across NSW can access the skills and pathways needed to participate in that growth. A strong technology workforce will help NSW attract more investment, create high-value jobs, and strengthen the industries that will drive the state’s future economy.”
NSW Minister for Innovation, Science and Technology Anoulack Chanthivong said:
“NSW has the scale, talent and ambition to compete with the world’s leading innovation economies.
“By attracting global investment, backing new industries and building the skills pipeline alongside them, we can create more high-value jobs, grow businesses here in NSW and ensure our people are well placed to benefit from the opportunities ahead.
“Our Innovation Blueprint is aligned with this mission, and this report highlights the importance of building the skilled technology workforce that will help deliver on it.”
Immediate opportunities for long-term gain
Digital Pulse shows NSW is already drawing technology workers from increasingly diverse pathways. Among those surveyed, 89 per cent undertook digital skills training in the past year, 37 per cent entered through a non-university pathway and 43 per cent were reskilled into a technology role within their existing organisation.
Nationally, 40 per cent of people entering the technology workforce over the past five years came through alternative pathways, including workplace training, industry credentials and self-directed learning.
ACS is calling for 20 per cent of entry-level technology hires to come through alternative pathways by 2030, supported by earn-while-you-learn models combining skills development, practical experience and employment.
Dr Ralston said universities would remain critical, but Australia needed to widen the pathways into technology.
“TAFE, workplace learning, industry credentials and career conversion all have an important role to play. Earn-while-you-learn is one of the most practical opportunities available, helping employers build capability while giving people a genuine entry point into technology.”
He said professionalisation would also be critical to recognising and trusting capability, regardless of how someone entered the profession.
“Initiatives such as ACS-led CyberPath, a government-backed pilot developing clearer cybersecurity career pathways, skills requirements and recognition frameworks, show how government, industry and education can turn workforce challenges into practical pathways and recognised capability.”
With 70 per cent of technology-worker time already affected by AI, but only 7 per cent of Australians demonstrating advanced AI literacy, Dr Ralston said upskilling existing and adjacent workers represented an immediate opportunity.
“Tech-adjacent and experienced workers, including Australians over 45, can move into AI and cyber roles without starting again. A funded national AI and cyber micro-credentialling program would be a practical way to build that capability quickly.”
NSW findings
- 352,800 technology workers in 2025, Australia's largest technology workforce
- 428,300 technology workers forecast by 2035
- 75,500 additional technology workers required by 2035
- $58 billion contributed by the technology sector to the NSW economy
- $152 billion in wages associated with digital tasks across industries
- 89% of workers undertook digital skills training in the past year
- 37% entered technology through a non-university pathway
- 43% were reskilled into a technology role within their existing organisation
National context
- Australia’s technology workforce fell 0.3% to 967,000 in 2025
- The national technology sector contributed $142 billion, up 5% in real terms
- Digital skills across the Australian workforce contributed $476 billion
- 70% of technology worker time is affected by AI
- Australia will require an additional 259,000 technology workers by 2035
- AI adoption could deliver $116 billion in economic benefits over the next decade
- 40% of tech workforce entrants over the past five years came through alternative pathways
Policy recommendations and immediate opportunities
ACS Digital Pulse 2026 sets out eight policy recommendations. ACS is asking that the professionalisation recommendation be given priority and specificity.
- Boost SME AI investment: Provide a one-year $1 billion AI investment boost, with a 50% tax deduction for AI training, strategy and technology for businesses under $50 million turnover.
- Build sovereign AI capability: Review Australia’s sovereign IT risk, consider a core technology fund, and better coordinate data centre and digital infrastructure investment.
- Professionalise the tech workforce: Insert a capability requirement into NSW ICT procurement for suppliers of AI and cyber security services to critical infrastructure. Use SFIA, accredited training and certification more consistently in government and industry recruitment, procurement and workforce planning.
- Expand alternative pathways: Target 20% of entry-level tech hires through alternative pathways by 2030, supported by earn-while-you-learn programs and employer training investment.
- Keep migration aligned to skills needs: Maintain migration pathways that respond to genuine digital skill shortages and enable employers to access high-value tech talent.
- Retain more women in tech: Address structural barriers through flexible workplaces, stronger return-to-work pathways and greater leadership representation. The report has a dedicated recommendation on improving women’s retention.
- Strengthen the school technology pipeline: Invest in teacher capability, technology participation targets, school-industry links and access to digital resources.
- Use gaming as a gateway to tech: Support game design and development as a way to teach the Digital Technologies Curriculum and attract students into STEM and technology careers.
ACS Australia’s Digital Pulse 2026, themed Now Shapes Next, is the 12th edition of the flagship report prepared by Deloitte Access Economics for ACS. The report and full policy recommendations are available at www.acs.org.au/digitalpulse.
Further information
Troy Steer Director of Corporate Affairs and Public Policy
M – 0417 173 740 E – troy.steer@acs.org.au
About ACS
ACS is the voice of Australia’s technology sector, representing more than 42,000 technology professionals across industry, education, government and the community. ACS works to grow Australia’s technology workforce, strengthen professional standards and ensure Australians have the skills and capability needed to participate in the nation’s digital future.