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How AI and Data Centre Growth Could Cushion the Australian Economy in a Downturn

ABC News

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Date Published
1 June 2026
Priority Score
2
Australian
Yes
Created
1 June 2026, 08:00 am

Authors (2)

Description

Follow the latest headlines from ABC News, Australia's most trusted media source, with live events, audio and on-demand video from the national broadcaster.

Summary

Infrastructure investment in AI and large-scale data centres is increasingly viewed as a counter-cyclical buffer for the Australian economy during potential downturns. Significant capital expenditure in these areas may drive productivity growth in both the near and long term, provided the transition is managed correctly. While the focus remains on macroeconomic resilience, the rapid scaling of data infrastructure facilitates the deployment of more powerful frontier AI models within the Australian jurisdiction. This growth underscores the increasing intersection between national economic stability and the physical requirements of advanced AI systems.

Body

VIDEO: How AI and data centre growth could cushion the Australian economy in a downturnKirsten AikenThe BusinessMon 1 Jun 2026 at 5:52pmMon 1 Jun 2026 at 5:52pmMon 1 Jun 2026 at 5:52pmHas Video Duration: 4 minutes 1 second.Watch 4m 1sChief global economist at Oxford Economics, Ryan Sweet says business investment or infrastructure spending, in AI and data centres, if done correctly, is a positive for productivity growth, both in the near term and also in the long run.   Share optionsFacebookLinkedInX (formerly Twitter)Chief global economist at Oxford Economics, Ryan Sweet says business investment or infrastructure spending, in AI and data centres, if done correctly, is a positive for productivity growth, both in the near term and also in the long run. Business, Economics and Finance