Rapid demand for AI datacentres in Australia could stoke inflation, experts warn – and crowd out land for housing

A datacentre in Melbourne. A NSW government inquiry has heard the rapid growth of the sector has raised concerns for the transport and logistics industries. Photograph: Ellen Smith/The Guardian

The Reserve Bank and Transport for NSW have warned datacentres could take scarce land from logistics firms and housing developments, pushing up prices and overheating the economy, as calls grow for a national pause on the booming sector.

The Reserve Bank board suggested rising investment in datacentres could add to inflation and had already put upward pressure on interest rates worldwide.