Australia’s rapid $155 billion data centre expansion is raising concerns about whether the country risks repeating mistakes made during the gas boom.

Economists warn that much of the investment could be foreign-led, with limited long-term benefits staying within the local economy.

Experts say the construction surge is highly import-dependent, meaning it may not deliver strong domestic growth or jobs as expected.
There are also fears that rising demand for electricity and water could strain infrastructure and push up costs for households and businesses.

Some analysts argue Australia could benefit more as an AI “adoption hub” rather than relying on infrastructure-led growth alone.

Policymakers are now being urged to set stronger tax, energy, and investment rules early to ensure the boom benefits Australians in the long term.