The explosion in development of data centres has helped to power Australia’s economy to its fastest growth rate in two years.
The Australian Bureau of Statistics (ABS) said gross domestic product (GDP) rose 0.4% in the September quarter of 2025 and 2.1% compared to a year ago on a seasonally adjusted basis.
The last time the economy grew by 2.1% over 12 months was in the year to September 2023, according to ABS figures.
Head of National Accounts Grace Kim said economic growth was steady in the latest three month period with the rise matching the average quarterly growth since the end of the COVID‑19 pandemic
“GDP per capita was flat for the quarter as economic growth was in line with population growth but remained 0.4 per cent higher than a year ago,” Kim said in a media release.
The ABS said private investment contributed 0.5 percentage points to GDP growth in the September quarter, driven by machinery and equipment investment, which rose 7.6% and aligned with an increase in imports of capital goods.
“The rise in machinery and equipment investment reflects the ongoing expansions of data centres. This is likely due to firms looking to support growth in artificial intelligence (AI) and cloud computing capabilities,” Kim said.
Housing investment contributed 0.2 percentage points to growth due to a rise in dwelling construction and high real estate turnover, while net trade detracted 0.1 percentage points as 1.5% growth in imports outstripped 1% increase in exports.
Household spending rose 0.5% in the September quarter and essential spending was up 1% due mainly to payments for banking and superannuation services, electricity and health.
Household discretionary spending fell 0.2% in the quarter after a strong rise in the June quarter, reflecting the impact of the extended Easter break and financial year sales.
Public investment rose 3%, driven by public corporation spending on renewable energy, water, telecommunications and rail transport projects.
