In a significant boost for Australia’s digital infrastructure, US artificial intelligence powerhouse Anthropic has inked a lease for its inaugural Australian data centre. Anthropic, a leading artificial intelligence company renowned for developing advanced AI models including its flagship product, Claude, plans to establish its operations within Queensland’s Western Downs Digital Park. This facility, currently under development by Zerra DC, boasts a substantial total capacity of 2.16 gigawatts, underscoring the scale of investment in local AI capabilities.
While the artificial intelligence sector continues to expand, broader market sentiment is increasingly shifting away from concerns over an AI bubble. Investors are now more apprehensive about the potential for a disorderly meltdown in bond markets, with Australia’s performance – currently halfway to a correction – offering a preliminary glimpse into such a scenario. Locally, the Australian Securities Exchange remained largely flat near noon, despite energy stocks seeing gains and gold miners experiencing a tumble. Notable movers included PIA, which surged 10 per cent following a settlement between WAM and Pengana, and Reliance, gaining nearly 5 per cent on a takeover bid.
A key contributor to the heightened market apprehension is the rapid expansion of Australia’s non-bank lending sector, commonly known as private credit. This market has witnessed an astonishing 540 per cent growth over the past decade, accumulating a staggering $253 billion. Experts are increasingly sounding alarms, drawing parallels to pre-Global Financial Crisis conditions, particularly after the recent $3.4 billion collapse of Bathla. Many fear this event could be merely the beginning, suggesting that the unprecedented growth in private credit may pose systemic risks to the broader financial system.
