Economic Perspective 18 September 2026
The Latest Trending Economic News Curated for You by Balmoral Group Australia
Hello Dear Readers,
This week we're looking at current and needed investments in resource management and water. Anthropic has made its first major investment in Australia with a new datacentre in western Queensland, expected to cost $31.9 billion and to be powered by coal and gas. Separately, the peak body for local government, the ALGA, has raised concerns over plastic and packaging producers shunting recycling costs onto local government recycling and waste management services, and is calling for tighter national regulations.
New research shows that government efforts of establishing marine protected areas may not be as successful as once thought, and the first stage of Victoria's Western Irrigation Network (WIN) - great name - has been completed and is set to deliver 2.4 billion litres of recycled water to farms in its first year. I've also attached a figure breaking down water consumption across key Australian sectors, showing how dependent different sectors are to reliable water sources.
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Happy reading and have a lovely weekend!
Anthropic lands deal in $31bn datacentre in western Queensland, David Crisafulli says
Anthropic, the AI company behind the the large language model Claude, has made its first major investment in western Queensland, where it will be leasing the site of its first Australian datacentre. The proposed Western Downs digital park will cost $31.9 billion and be the largest of its kind in Australia, built by Singapore-based Zerra DC near Dalby, north-west of Toowoomba, the with first stage planned to open next year. Queensland, along with the Northern Territory, rejected the federal government's push in July to require new AI centres be powered by renewables. The Anthropic centre will thus connect to the Braemar gas and coal power station. Read more here.
Councils voice rising waste costs concerns
The Australian Local Government Assocation (ALGA) recommends requiring producers to use more recycled content, rather than passing on the costs of recycling onto councils, however, the federal government have abandoned mandatory packaging standards due to concerns over cost-of-living impacts. Ratepayers and councils must deal with large volumes of packaging that is sent into the market only to wind up in local government recycling or waste management. ACOR projects that the cumulative costs of plastic packaging could exceed $32 billion by 2050, and without national regulations there can be no mechanism to enable industry to help carry costs. Read more here.
We’re not protecting our oceans as well as we think: new research
Overfishing is increasing severe. The global catch has plateaued despite more intensive and technologically advanced fishing, and climate change and other anthropogenic pressures place additional stress on marine species. Governments have been establishing marine protected areas, such as 30 by 30 target, however, new research suggests these may not be as effective as once thought. while 10% of the ocean is officially protected, underwater research shows less than 2% of the ocean falls inside protected areas where biodiversity is improving. The research recommends improved underwater monitoring and stronger fishing-rule compliance. Read more here.
Recycled water network strengthens water security for Victorian farms
The Western Irrigation Network (WIN) project has now completed its first stage. The network will supply 2.4 billion litres of recycled water to farms west of Melbourne in its first year, irrigating around 1,500 hectares of farmland near bacchus Marsh. The $116 million project built 28 kilometres of pipeline connected the Melton Recycled Water Plant to farmland, as well as 3 transfer pumping stations and a one-billion-litre winter storage dam. The network aims to improve agricultural drought resistance. Read more here.
Consumption of water across Australian industries (in Megalitres)
The graph below based on ABS data shows the distribution of water consumption across Australian industries and households. Consumption is calculated by subtracting total water use from total water supply, where some industries put water back into the system while also extracting it. Agriculture, forestry and fishing is the largest net consumer of water by far, reflecting high water dependence. Investments that increase drought resilience and water-use sustainability of agriculture will be vital going into the future.
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