Millions will be poured into a state plan, billed as the first of its kind in Australia, to capture a bigger slice of the artificial intelligence pie.
Victorian Premier Jacinta Allan used the state of the state address on Thursday to announce her government would spend $5.5 million to go after data centre jobs.
"We’re going to be ruthless about it," she told the crowd at the annual Committee for Economic Development of Australia event.
Data centres are digital infrastructure that supports AI, with Victoria already hosting more than 40.
Ms Allan claimed the cash would position Victoria as a national leader in data centre investment, unlocking projects worth up to $25 billion.
"We want to be the 'data centre' centre," she said.
Advancements in AI could generate up to $30 billion in gross state product over the next 10 years, the premier said.
Ms Allan said the technology could lift productivity and give people time back in their day, but acknowledged guardrails were needed to protect jobs.
"The gains won’t be worth it if we aren’t prioritising people," she said.
As such, Victoria has earmarked another $8.1 million for upskilling more than 1300 workers to become AI specialists.
The measures form part of an AI mission statement to be handed down by Economic Growth Minister Danny Pearson in coming weeks.
"We'll be the first state in the country to deliver anything like it," Ms Allan said.
"It will have further initiatives to attract jobs and investment."
The federal government on Tuesday announced plans to launch the Australian AI Safety Institute to co-ordinate a national approach to the technology and as the industry awaits the launch of AI regulations.
The Productivity Commission estimates AI could add more than $116 billion to Australia's economy over the next decade but warns "poorly designed" regulation could stifle its adoption, development and benefits.
In another economic move, the premier has critical minerals and rare earths in her sights following Australia's deal with US President Donald Trump.
She revealed the Victorian government has formally approved a mining exploration tunnel at Sunday Creek near Kilmore, north of Melbourne.
It paves the way for drilling to test the feasibility of mining gold and antimony, a metal used to harden lead in storage batteries.
