NEXTDC Announces USD 1.42 Billion, 150MW AI Factory and Technology Campus at Fishermans Bend

• Melbourne is currently viewed as the preferred AI market for Australia due to cheaper power and land costs as well as significantly faster development planning pathways.
• AusNet Services (AusNet) and Australian Energy Market Operator (AEMO) are working on bringing forward development timelines for 2 major Terminal Stations, backed by Operator demand.

CDC USD2.7 billion Laverton data centre campus is under construction. The Laverton campus will add 150MW to CDC’s 630MW footprint in Melbourne

• Multiple large Cloud/AI contracts completed in 2024 with competing operators were taken up in the short-term and immediate capacity.
• Hyperscale self build has been most prevalent with significant campuses under development.

NEXTDC plans 80MW, Tier IV data centre in Port Melbourne

• Privates and developers are starting to progress and secure power and DA’s on existing holdings to enter the market via BTS and JV offerings.

Outlook

• For Users
  • Rents are expected to increase in line with global trends and continued demand.
  • Facilities in Port Melbourne and Fishermans Bend seeing increased demand due to cloud proximity.
  • The implementation of higher density configurations to maximise value.
• For Providers
  • The region is seeing early stages of planning for new power infrastructure in Availability Zones.
  • Melbourne is becoming an AI hub due to lower cost of land and easier development controls.
  • Increased competition for data centre sites as other Australian markets become significantly constrained.