Data centres will drive up energy, water and construction costs

Tuesday 21 July 2026

CBA economist Lucinda Jerogin has written an interesting analysis of Australia’s data centre boom, which she forecasts will add 0.2% to Australia’s GDP growth over 2026 and 2027.

Based on public announcements, CBA estimates that there is around 6GW of potential capacity in Australia’s pipeline, with delivery concentrated in NSW and Victoria.

CBA notes that power and water are the most acute constraints affecting the data centre boom.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.