The Economic Perspective 8 May 2026

The Latest Trending Economic News Curated for You by Balmoral Group Australia

Hello Dear Readers,

This week we're focusing on infrastructure. France has released a world-leading fossil exit plan detailing phase outs for coal, fossil oil and gas production. At home, a $5.7 billion infrastructure funding gap is restricting housing delivery due to limitations on road, water, sewerage and other utility infrastructure. Meanwhile, University researchers are exploring the potential of scaling up an Australian green iron industry, just as the largest data centre contract in Australia highlights the growing pressure on our national energy grid. To provide further context, I have attached a diagram from a 2025 research paper illustrating global projected water use from data centres up to 2050.

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Hope you enjoy the articles and have a lovely weekend!

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France Sets 2050 Roadmap To Exit Fossil Fuels And Cut Energy Dependence

France has published "the world's most comprehensive" national fossil fuel exit roadmap, presented at international climate talks in Colombia. The 14-page plan creates no new pledges but consolidates existing policy into a single framework with time bound targets to phase out coal by 2027, fossil oil by 2045, and gas by 2050. Fossil fuels made up just under 60% of France's final energy use in 2023, and the roadmap sets interim targets of 40% by 2030 and 30% by 2035, underpinned by nuclear expansion, transport electrification, and heat pump deployment. Read more here. 

Councils call for infrastructure funding to drive housing delivery

Australia's peak local government body, the Australian Local Government Association (ALGA), is pressing all levels of government to close a $5.7 billion infrastructure funding gap standing between the country and its target of 1.2 million new homes in five years. The call follows a National Housing Supply and Affordability Council report endorsing the federal government's Housing Support Program as a vehicle for funding enabling infrastructure (such as roads, water, sewerage and utilities. Councils say they cannot deliver without sustained cross-government investment. Read more here.

Can Australia green its heavy industry? It’s hard – but necessary

Decarbonising Australia's heavy industries is now technically feasible, but up scaling requires coordinated regional hubs rather than isolated projects. Researchers from Monash University and UNSW argue that shared infrastructure for power, water and transport could cut costs 20-30% based on models for shared infrastructure hubs in South Australia and NSW. However, institutional barriers include fragmented approvals, limited government-industry coordination and project-by-project business models, slowing progress that policy reform could accelerate. Read more here. 

CDC signs 'largest ever' Aussie data center deal to provide 555MW for US client

CDC Data Centres has signed Australia's largest-ever data centre deal with a US client for a 30-year, 555MW contract, which could be extended by an additional 20 years. CDC has nearly 20 sites in operation and development across Australia and New Zealand, and their future development pipeline now totals 1.6GW out to 2034. Unfortunately, AGL Energy simultaneously sounded a supply alarm that AI-driven data centre demand could increase sevenfold over the decade, resulting in current grid infrastructure and approvals frameworks struggling to keep pace with the acceleration. Read more here. 

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Scenario estimates for global data centre water use

A 2025 paper estimated global data centre water consumption under three scenarios: business-as-usual, moderate intervention, and sustainable transformation. This figure shows simulated means and 90% confidence intervals for each scenario, with business-as-usual increasing consumption to 4.18 billion litres/day in 2030, and 28.11 billion litres/day in 2050. This can be circumvented by efficient cooling systems and moderating infrastructure expansion.

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