Australia is building a lot of new homes. But is the datacentre boom holding us back? | Greg Jericho
News Source
β’Wed, 07 Oct 2026 14:00:54 GMT
π° What Happened
New data shows Australian home building is at its strongest level since 2016. In the year to June, residential building rose 8.7%, and total building grew 10%. But a huge datacentre boom is using up workers and materials. In the past year, spending on datacentres was 17 times higher than spending on factory construction.
π The Backstory
Datacentres are large buildings full of computers that power AI and the internet. Demand for them has soared worldwide as AI grows. Australia is struggling with a housing shortage, so scarce builders are being pulled toward these projects. The article asks whether the boom is slowing home construction.
π― Why It Matters
If building resources go to datacentres instead of homes, house prices and rents could stay high. This affects whether ordinary families can afford a place to live.
New data shows Australian home building is at its strongest level since 2016. In the year to June, residential building rose 8.7%, and total building grew 10%. But a huge datacentre boom is using up workers and materials. In the past year, spending on datacentres was 17 times higher than spending on factory construction.
Datacentres are large buildings full of computers that power AI and the internet. Demand for them has soared worldwide as AI grows. Australia is struggling with a housing shortage, so scarce builders are being pulled toward these projects. The article asks whether the boom is slowing home construction.
If building resources go to datacentres instead of homes, house prices and rents could stay high. This affects whether ordinary families can afford a place to live.