Australia faces same issues that flipped control of US Congress in midterms, experts say

Anthony Albanese’s government has taken a blow due to Iran war but voter anxiety around cost of living and datacentres may hit harder

The Democrats’ stunning midterm victory should broaden Australia’s alliance with the US, observers say, even as a new power base emerges in Washington, affecting Aukus, datacentre development and relations with China.

Cabinet ministers, diplomats and Australia’s defence industrial sector closely watched the results this week, with control of the US Congress flipping to the Democrats and the outlook for Donald Trump’s final two years in office badly dinted.

Public fury over rising living costs, particularly fuel prices, and the impact of datacentres, were also two factors in the midterms results that carry warnings for the Australian government, analysts said.