$35 Billion Data Centre Funding Boom Raises Concerns About Inflation and Economy

Australian data centre operators have raised $35 billion in funding this year, surpassing the previous record of $24 billion set in 2025. This represents a 46% increase and marks a significant acceleration of funding for the sector.

The Reserve Bank of Australia (RBA) analysis shows that the majority of this funding, 85%, has come from debt financing through syndicated lending, bonds, and private equity. Syndicated loans have been the biggest source, accounting for $25 billion or three-quarters of data centre financing in both 2025 and 2026.

RBA analyst Bradley Speed notes that the figure may be conservative due to missing single-bank loans and private transactions. The rapid growth in AI-related fundraising has raised concerns about its potential impact on inflation and the broader economy.