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Australia’s data-center boom could push 2026 inflation higher

9/7/2026

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Summary

Story summary

Bloomberg analyst James McIntyre says Australia’s data-center boom could outstrip supply and fuel inflation.
He estimates data-center capital spending will exceed 2% of GDP in 2026-27.
The projects will draw skilled trades away from renewables, infrastructure and housing sectors.
Reserve Bank of Australia faces pressure to raise rates after stronger inflation and GDP data.
It raised the cash rate three times from February to May, reaching 4.35%.

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Story summary

Bloomberg analyst James McIntyre says Australia’s data-center boom could outstrip supply and fuel inflation.
He estimates data-center capital spending will exceed 2% of GDP in 2026-27.
The projects will draw skilled trades away from renewables, infrastructure and housing sectors.
Reserve Bank of Australia faces pressure to raise rates after stronger inflation and GDP data.
It raised the cash rate three times from February to May, reaching 4.35%.