Data centres propel Australian investment to decade high

InvestorDaily

Australian business investment reached 12.6 per cent of GDP in the June quarter of 2026, its highest level since 2015, according to new analysis from the Committee for Economic Development of Australia (CEDA). CEDA’s latest business insights report, based on Reserve Bank of Australia forecasts and surveyed capital expenditure intentions, showed investment was expected to peak at more than 13 per cent of GDP during 2027-28 before easing towards its recent average. The surge was being driven almost entirely by the information, media and telecommunications industry, as businesses invested heavily in data centres, cloud computing and artificial intelligence infrastructure.

Capex by this industry almost doubled in 2025-26 compared with a year earlier in inflation-adjusted terms, accounting for 22 per cent of all non-mining capex – more than double its contribution a year earlier. Earlier this week, numerous technology and AI-related companies such as NEXTDC and Weebit Nano were promoted within the ASX indices thanks to their growth in market capitalisation from this technology boom. Other industries that stepped up investment during 2025-26 included administrative services, which recorded a 17 per cent increase in annual capex volume, transport services at 15 per cent, healthcare at 14 per cent and retail trade at 12 per cent.

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