STACK files for 450MW data centre campus in Sydney’s west. The company is set to invest USD 405 million into the project

• Sydney has experienced significant Hyperscale uptake due to increased AI and Cloud demand, resulting in a short-term supply gap.
• Multiple large land acquisitions have been completed in Western Sydney, providing a land-bank supply of over 1.5GW (subject to power/planning).

Doma Infrastructure Group announced plans for 50 MW data centre in Western Sydney

• Significant upgrades and new Terminal Substations are needed to accommodate immediate and future demand.
• Major developers (Goodman, ESR & Stockland) are progressing power applications for existing holdings, aiming to create significant ‘Powered Land Banks’.

Macquarie Technology Group plans to construct 150MW data centre campus

• Operators entering the Australian market are looking to launch in Sydney.
• These operators are having difficulty de-risking acquisitions due to power constraints and Foreign Investment Review Board (FIRB) implications.

Outlook

• For Users
  • Limited supply in Enterprise markets due to AI expansion is resulting in an increase in USD kW rates.
  • Proximity to CBD and connectivity remains the main influence for relocation.
  • Rents are increasing in Retail, Enterprise and Hyperscale as demand has outstripped supply.
• For Providers
  • Streamlined Development Application process will help increase planning certainty.
  • Power availability in existing Availability Zones remains scarce with pathway to power se.
  • Change in the way power applications are being assessed will cause disruption in the short term.