AI data centres' $870 billion boom threatens housing projects
Data centres are set to reach $870 billion by 2027. They compete with housing for scarce workers.
Australia is set to invest $870 billion in data centre projects by 2027, more than double what it spent at the peak of the mining boom in the 2000s. Data centres are being built close to major cities and compete directly with housing and other construction for scarce workers and materials.
Labour is the main problem: competition will drive up costs and delay projects. Seventy per cent of the investment is imported, limiting the jobs boost.
The building boom comes as the economy is already stretched by inflation and construction backlogs. This raises risks of delays and cut-back projects.
- $870 billion
- Data centre investment by 2027
- More than double
- Compared to mining boom peak
- 70 per cent
- Investment from imports
- NSW, Queensland, Victoria
- Leading states
Why it mattersHigher construction costs and delayed housing and infrastructure projects will make the cost-of-living squeeze worse.
AustraliaAustralia's construction sector faces labour bottlenecks from the data centre rush, risking delays to housing, hospitals and essential infrastructure.
Corroborated byperthnow.com.au
✓ Claims checked against the source and corrected before publish. checked 3 h ago
