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Deloitte Says Australian Data Center Boom Is Stoking Inflation and Could Reach Twice the Mining Investment Wave

November 4, 2026 at 22:25 EST

Infra & Chips

Deloitte Access Economics says a surge in data center construction is amplifying Australia's building program and adding to inflationary pressure, with the investment expected to be double the scale of the mining boom from more than a decade ago.

Deloitte Access Economics · Australia

Data centers could out-build the mining boom and add to inflation

A surge in data center construction is amplifying Australia's building program and feeding price pressures. The expected investment is projected to be twice the scale of the mining boom of more than a decade ago.

2×

Projected data center investment relative to the mining boom

1×

Baseline: the mining boom, one of the largest investment cycles in modern Australian history

Investment scale, relative to the mining boom

Each block = one mining-boom unit (1×). Column height is proportional to scale.

1×

Mining boom

2×

Data centers (projected)

How the pressure spreads

Construction demand pulls on several scarce inputs at once.

Data center construction surge

→

Materials, skilled trades, equipment and electricity demand

→

Costs rise across the sector

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Broader inflationary pressure

Read with caution

This is a consultancy projection, not a confirmed outcome.

Timeframe of the investment is not specified
Dollar value of the spending is not specified
Inflation figures attributed to data centers are not specified
Open questions: whether long-term cloud and AI demand sustains the pipeline, how fast labor and materials bottlenecks ease, and whether policymakers see the sector as a productivity driver or a cost pressure

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