Australia's Data Centre Investment Forecast to Reach $60 Billion by 2030

Using input-output modelling, the economic effects of data centre expenditure can be assessed by tracing how spending flows and measuring both direct activities linked to projects and the indirect activities supported through suppliers and their supply chains. According to Oxford Economics, data centre construction spending may add $65 billion to GDP and provide over 350,000 job-years during the fiscal years 2026 to 2030. However, these figures reveal only part of the picture, leading to three critical lessons regarding the distribution of spending, beneficiaries, and the infrastructure's eventual impact.

**Lesson 1: Evaluate Local Spending**

Out of $224 billion in cumulative capital expenditure from FY26 to FY30, approximately $78.2 billion (about 35%) will remain in Australia, meaning about $146 billion is expected to flow overseas. Including operational expenditure, around 38% of the estimated total spend of $242 billion will stay within the country.

This limited retention is largely due to the spending composition. IT hardware, which includes chips, servers, and storage, is projected to constitute about half of the investment pipeline by 2030, with only 5-15% of this spending occurring within the Australian economy. Power and cooling installations are also significantly reliant on imports, accounting for 25-45% of local expenditure. In contrast, shell and site infrastructure are largely domestic, with 70-80% and 60-80% respectively, as well as land, permitting, utilities, and facility operations. Understanding the split of expenditure is essential for gauging a project’s economic impact.

**Lesson 2: Broader Economic Impact**

The economic ramifications of data centre investments extend beyond the immediate location. Modelling indicates that suppliers will generate about 59% of the GDP contribution from capital expenditure—$38.7 billion of the total $65.7 billion—and support around 65% of the projected 353,000 job-years during FY26 to FY30.

Throughout construction, various sectors including construction services, wholesale trade, engineering, and professional services will experience increased demand. Once the facilities are operational, continual spending will benefit sectors such as electricity networks, maintenance, cleaning, and telecommunications. Notably, suppliers in these sectors are located in both urban and regional areas, creating economic opportunities beyond major city developments. Local procurement and supplier development will be crucial for developers. For Australian businesses, there will be opportunities across various industries as timing and spending composition information can help them prepare their workforces and capabilities.

**Lesson 3: Long-Term Potential for Productivity**

While data centres are projected to make significant economic contributions, their long-term value extends beyond immediate financial impacts. Input-output modelling can assess economic activities supported by expenditure, but it does not capture net economic benefits or the productivity enhancements enabled by the infrastructure.

The economic advantage lies in how Australian businesses can leverage this computing capacity. Utilizing data centres for applications such as ore-body modelling, medical imaging, and precision agriculture could enhance productivity while fostering expertise, intellectual property, and export opportunities in Australia. There is potential for developing specialized models using local industry data, adapting existing models for specific tasks, and implementing secure models for sensitive sectors like government and healthcare. Collaborating imported hardware with local data and industry insights can further enhance these gains.

To unlock this potential, stakeholders need to ensure affordable access to computing resources, develop a skilled workforce, secure appropriate data access, and establish pathways for commercialization. For policymakers and developers, the goal should be to link infrastructure investment with researchers, suppliers, and businesses capable of creating practical applications, focusing on the capabilities and productivity enhancements that emerge around these facilities.