Communications minister, Malcolm Turnbull, and Human Services minister Marise Payne, said the Fyshwick datacentre would be shared by agencies to streamline government spending.
Turnbull said the datacentre was a great example of collaboration across government agencies to deliver modern technology that's value for money for Australian taxpayers.
"The security and reliability offered by this new facility means the government is in a strong position to expand the services offered through its various digital channels and provide services to various Commonwealth agencies," he said.
"The Fyshwick data centre has also been specifically designed to ensure an energy conscious and cost effective use of resources.
"The building is nearly entirely self-sufficient with its water requirements thanks to a clever water retention system, and an LED lighting system ensures power isn't used unnecessarily."
The opening of the new site marks the near completion of the Department of Human Services' datacentre consolidation project and will save taxpayers $24.5 million in leasing costs over the next decade.
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Minister Payne said the new high-tech datacentre had been built with the future in mind and would be an important addition to the work now underway to upgrade the welfare payment IT infrastructure.
"This is a secure, efficient, 21st century datacentre that will work hand-in-hand with the welfare payment system we will be implementing over the coming years," she said.
"This secure facility is designed to ensure data is available 99.995 per cent of the time."
Payne said the consolidation of the department's datacentres from seven down to two facilities would give the department added capability to support the Government's Digital Transformation Agenda and ensured that customers had access to important digital services at any time of their choosing.
"The Department administers over $159 billion in government payments to millions of Australians, so it is absolutely imperative we have measures in place to ensure we can deliver vital government services twenty-four-seven," she said.