"Today's national accounts show the extent to which datacentre activity is shaping the economy, but with highly volatile and mixed impacts," said Innes Willox, Chief Executive of the national employer association, Australian Industry Group.
Australian real GDP growth slowed to 2.1% p.a. in the second quarter of 2026, down from 2.5% in the previous quarter.
Household consumption was the primary driver of growth while business investment was flat. Net trade made a small contribution to growth, with surging fuel imports due to the global energy crisis offset by higher mining and gas exports.
"The major theme in today's data is how datacentre building is reshaping Australia's economy – albeit with highly mixed effects," Mr Willox said.
"Capital expenditure in the ICT industry fell 30% in the quarter as datacentre builds eased up, reversing the high rates of investment growth seen over the last year. However, a corresponding 26% fall in related equipment imports meant the net effect on GDP growth was very minor.
"Datacentre builds are also reshaping industry performance. The four fastest growing industries in Australia – ICT, professional services, financial services and construction – are all beneficiaries of the datacentre boom. Each enjoyed growth rates above 4% p.a., compared to a 2.3% average across all industries.
"However, growth was subdued across the parts of the private sector without datacentre connections. Consumer industries such as retail and food are slowing with weak household spending growth,while industrials like manufacturing, transport and utilities struggled with surging fuel prices due to the global energy crisis.
"While datacentre activity eased in the quarter, it remains highly elevated if volatile. The future pipeline shows this boom will continue for some time, and is now decisively shaping the performance of our industries, trade and economy.
"Unfortunately, neither datacentres nor AI are yet to lift Australia's abysmal productivity performance, with labour productivity flat again in the quarter. Productivity is 0.2% lower than a year ago, and remains mired at 2019 levels.
"Governments must get the policy settings – for planning, energy, and the subsequent use of AI technologies across the economy – right if we are going to make the most of the datacentre and AI opportunity," Mr Willox said.
