Australia's AI infrastructure investment forecast to reach US$703 billion by 2050

Wednesday, 9 September 2026

• Australia is forecast to attract US$703 billion in cumulative AI infrastructure investment by 2050. 
• Annual Australian data centre capital expenditure is projected to rise from US$16.5 billion in 2026 to US$41.6 billion in 2050. 
• Australia ranks as the 17th largest market globally and the fourth most investment-intensive market in Asia Pacific relative to GDP. 
• Power availability, connectivity, security, policy certainty and community consent are expected to be key factors shaping where AI infrastructure investment flows.

Australia is forecast to attract approximately US$703 billion in cumulative AI infrastructure investment by 2050, according to PwC's Global Data Centre Outlook. The analysis positions Australia as the 17th largest market globally and the fourth most investment-intensive market in Asia Pacific relative to GDP.

Annual data centre investment in Australia is projected to increase from US$16.5 billion in 2026 to US$41.6 billion by 2050 as organisations, governments and investors build the infrastructure required to support artificial intelligence.

The research found attracting investment is not solely a question of capital availability. Access to affordable and reliable electricity, clear policy settings, secure digital assets and community confidence in how projects are developed will increasingly influence where spending is directed.

PwC Global Infrastructure Leader, Clara Cutajar, said AI has created a significant new opportunity for long-term investment, while also placing greater focus on how data centres are built and integrated into broader energy and economic systems.

Unlike traditional infrastructure builds, spending on AI infrastructure is expected to continue rising over time as chips and other ICT equipment require regular replacement and upgrades. ICT equipment is forecast to account for an increasing share of investment, lifting globally from around 70 per cent today to 93 per cent by 2050.

In Australia, annual investment in ICT equipment is projected to reach US$38.2 billion by 2050, compared with US$3.3 billion for construction, highlighting the growing importance of digital infrastructure as AI adoption scales across the economy.

The top factors shaping future investment

The Outlook identifies five factors that could determine where AI infrastructure investment is directed: power availability; connectivity; security; policy certainty and community consent; and GPU access. Together, they shape the ability of countries to support long-term data centre development. 

Power is the leading consideration, with affordable, reliable and lower-carbon electricity increasingly important to sustain AI workloads at scale. Connectivity and security remain foundational requirements, while regulatory certainty and community support are likely to play a growing role as new infrastructure is built.

For countries seeking to attract investment, the challenge will be balancing increasing demand for digital infrastructure with broader energy, planning and community priorities.  

Export controls and digital sovereignty shape investment outcomes

The analysis also tested two scenarios to assess how changes in trade policy, export controls and digital sovereignty could affect global AI infrastructure investment.

1. Constrained chip supply: In the first scenario, tighter export controls disrupt global chip supply chains, causing investment to slow as access to critical components becomes more restricted. Cumulative global investment through to 2050 falls to approximately US$25.5 trillion, around US$6 trillion below the baseline forecast of US$31.6 trillion.
   
   Australia would also be affected, with cumulative investment between 2026 and 2050 projected to fall to approximately US$560 billion, around 20 per cent below the central forecast of US$703 billion.
   
   
2. Sovereignty-led demand: The second scenario assumes governments and regulated industries place greater emphasis on trusted domestic infrastructure and local data hosting. While overall global investment declines only marginally, capital shifts towards countries with strong domestic demand and relatively underdeveloped data centre capacity.
   
   Asia Pacific emerges as a beneficiary overall in this scenario with cumulative capex through to 2050 expected to rise 7 per cent. However, Australia could receive around 15 per cent less than under the central forecast, decreasing to US$597 billion, as investment is redirected from regional hubs to be in country.

Ms Cutajar said the findings highlighted the importance of investment readiness and long-term planning.

The Outlook is the first of its kind to provide long-range forecasts for AI infrastructure capital expenditure through to 2050. It covers 46 countries and territories and includes both data centre facilities and the technology they contain.

Read here for the full insights.