Tiger Brokers

Fraction of Digital Infrastructure Investment Likely to Flow to Australian Banks

Dow Jones
Jul 14

2350 GMT - Digital infrastructure could unlock A$30 billion-A$60 billion of bank lending, says Macquarie. It points out that Australian data-center capacity is expected to grow 10 times over the next decade. That will require significant investment in data centers, power, connectivity and related infrastructure. Still, this may not be the rosy opportunity for Australia's big banks that it appears. "Despite the large investment cycle, we estimate only 1-2% EPS upside for banks over the medium term," says Macquarie. It's unlikely to offset slower housing credit growth, particularly given Australian bank mortgage books represent 50%-65% of balance sheets, Macquarie adds. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

July 13, 2026 19:50 ET (23:50 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10