Key Takeaways
- • Data centre construction is surging to meet the compute demands of AI companies, with private capital playing a key role in financing the buildout.
- • Local communities around the world are opposing new projects over land use, energy demand and noise pollution, and that opposition could delay or cancel developments.
- • In the US, states including Texas and New York have issued temporary restrictions on new data centre construction, and the issue has become a flashpoint in the midterm election campaign.
- • Australia has attracted significant data centre investment owing to its abundant land and energy, and infrastructure investor Morrison has been particularly active there and in France.
- • Morrison CIO Will Smales discusses the data centre opportunity, the role of superannuation funds, public opposition, AI demand vulnerabilities, securing public consent and site selection.
Summary
Data centre construction is accelerating as AI companies seek greater compute capacity, and private capital is playing a central role in financing that buildout. The growth in new projects is coinciding with rising public opposition. Local communities in multiple countries are objecting to developments on the basis of land use, energy demand and noise pollution. Wider concerns about the societal impact of AI, amplified by senior figures at Anthropic, OpenAI and Google DeepMind, are adding to the scrutiny. The primary source notes that such opposition could delay or cancel new projects.
In the US, data centres have become a flashpoint in the midterm election campaign. States including Texas and New York have issued temporary restrictions on the construction of new facilities, illustrating how regulatory and political pressure is emerging as a material risk to development timelines.
Australia is one of the regions where buildout is greatest, owing to its abundance of land and energy. Infrastructure investor Morrison, which was originally founded in New Zealand, has been particularly active. The firm backs hyperscale platform Canberra Data Centres and has recently launched a joint venture with Orange in France.
The primary source is a discussion with Morrison CIO Will Smales as part of the Stories of Transformation series. The conversation addresses why Australia has attracted significant investment, the role superannuation funds are playing, the nature of public opposition and how private capital should respond, vulnerabilities to AI demand, approaches to securing public consent for new projects, and the importance of site selection. The publisher summary does not set out Smales's specific positions on these points.
In the US, data centres have become a flashpoint in the midterm election campaign. States including Texas and New York have issued temporary restrictions on the construction of new facilities, illustrating how regulatory and political pressure is emerging as a material risk to development timelines.
Australia is one of the regions where buildout is greatest, owing to its abundance of land and energy. Infrastructure investor Morrison, which was originally founded in New Zealand, has been particularly active. The firm backs hyperscale platform Canberra Data Centres and has recently launched a joint venture with Orange in France.
The primary source is a discussion with Morrison CIO Will Smales as part of the Stories of Transformation series. The conversation addresses why Australia has attracted significant investment, the role superannuation funds are playing, the nature of public opposition and how private capital should respond, vulnerabilities to AI demand, approaches to securing public consent for new projects, and the importance of site selection. The publisher summary does not set out Smales's specific positions on these points.
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