Overview
- Treasury published a note for the intergenerational report on August 31, 2026 that warned a domestic data‑centre boom worth about A$150 billion by 2030 could push up the neutral interest rate by increasing demand for capital and competition for scarce inputs.
- The department counted roughly 162 operational data centres with about 130 proposed projects and estimated that roughly two thirds of data‑centre spending is imported, limiting how much value the local economy captures.
- Treasury found AI adoption is widespread but shallow, with fewer than 10% of firms reporting significant use, and said broad organisational change in processes, management and skills is required for productivity gains to materialise.
- The federal government has sent ministers to the United States to meet major AI firms including Anthropic, OpenAI, Microsoft, Google, Amazon and NVIDIA to secure investment and build local capability.
- Treasury flagged downside risks such as AI‑enabled cyberattacks, concentrated tech valuations and possible market corrections that could produce large, persistent negative growth shocks before any productivity benefits arrive.