Australia’s AI Boom Risks Demand Surge and Higher Rates, BE Says

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Australia’s AI Boom Risks Demand Surge and Higher Rates, BE Says
Australia’s data center boom risks pushing demand beyond the economy’s supply capacity, fueling inflation and requiring the Reserve Bank to run higher interest rates, according to James McIntyre at Bloomberg Economics.
The surge in spending could push capital expenditure above 2% of gross domestic product in 2026-27, McIntyre, BE economist for Australia, said in a research note. He reckons major data-center developments will intensify competition for construction capacity, drawing skilled trades away from renewable-energy developments, infrastructure projects and housing.

document fetched 2026-09-07 07:34 · canonical https://bloomberg.com/news/articles/2026-09-07/australia-s-ai-boom-risks-demand-surge-and-higher-rates-be-says