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

Calls are growing for new datacentre approvals to be halted until stronger protections are considered

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Transport for NSW and the Reserve Bank 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 rapid growth of datacentres has raised concerns for the transport and logistics sector, with Transport for NSW telling the state parliament inquiry on datacentres there was already significant pressure on the availability of industrial land and infrastructure.