The debate around AI and datacentres is such that, to paraphrase Paul Keating, if you walked into any pet shop in Australia, the resident galah will be talking about it.

I am on the record as being a sceptic of AI productivity booms, or the need to do all we can to make sure we are at the forefront of the AI revolution.

Sure, there will be benefits in medical and scientific research. Does that require building datacentres in every vacant block of land in the country? And will medical and scientific research be the overarching use of these datacentres?

Despite this, the one thing we are told is that it should lead to more economic growth. After all, that is just what happens when there is a boom in investment.

Except, as I noted when the March GDP figures were released, the AI boom is not translating into anything that is leading to better living standards.

I am not alone in being sceptical about this. The Australian Financial Review earlier this week asked: “We’re told business investment is key to boosting productivity, but what if the spending involves importing computer equipment?”

This is the problem with the AI boom. The “investment” involves importing things like data........

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