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The RBA says so.
The Reserve Bank is concerned that the recent explosion in data centre investment could compete with Australian businesses for workers and resources, making its fight against inflation harder and contributing to interest rates staying higher for longer.
Economists say the RBA is right to be worried, given the investments are occurring at a time when Australia has little capacity to absorb higher demand for energy, electricians and construction workers.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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