Australia's Data Centre Boom Quadruples to $104 Billion

The value of emerging data centres in Australia has quadrupled to $104 billion in just one year, driven by demand for artificial intelligence power.

Australia's 33 data centre projects have a combined value of $104 billion, up 300% from the previous year, according to Deloitte Access Economics' Investment Monitor report.

The technology is seen as a lifeline for Australia's sluggish economic growth, which is being held back by weak productivity. Reserve Bank of Australia governor Michele Bullock has blamed weak productivity for constraining the economy's ability to grow without generating high inflation.

Demand for scarce resources to build data centres is expected to become a bigger challenge, with competing projects for labour and materials driving up construction costs.

Nonetheless, big tech companies are expected to continue investing in data centres, especially in first-world economies like Australia. The report notes that global technology companies will look to expand capacity in stable markets with reliable infrastructure, transparent regulation, and access to renewable energy.