Overview
- Reserve Bank Assistant Governor Sarah Hunter set out the warning in speeches and staff research released on Monday, saying AI-driven investment is a near-term source of demand that has added to price pressures and supported recent rate rises.
- RBA research shows domestic data-centre investment has expanded about tenfold over three years and the bank projects roughly $115 billion more could be built by end-2028, although that outlook depends on limits such as power, water and construction capacity.
- The bank flagged a financial‑stability risk from heavy private bets on AI: if expected returns do not materialise some asset prices could face sharp repricing or disorderly adjustments, exposing investors and lenders.
- RBA staff estimate household exposure to AI-related equities rose from about 2% of financial wealth at end-2022 to 5.3% by June 2026, meaning a large fall in those shares would shave household wealth and could dent spending.
- Some planned Australian data-centre projects have been delayed or cancelled after local opposition, and separate RBA analysis shows a more than 200% year‑on‑year rise in DRAM prices feeding through to higher tech and consumer costs globally.