The AI Boom's Hidden Threat: Inflation Lurks in the Shadows The Australian government is enthusiastic about the potential of artificial intelligence (AI) to boost productivity and living standards.
Treasury analysis reveals that a boom in data centre construction across the country could lead to a significant increase in interest rates, putting upward pressure on the cost of capital.
This development may seem distant for those not directly involved in the tech sector, but its implications are far reaching. The sheer scale of investment pouring into AI related projects is a major concern.