Sydney Land Deal Puts Macquarie’s Data Centre Expansion on Conditional Hold
Macquarie Technology Group’s subsidiary has secured an option to acquire a prime Sydney site for a major new data centre campus, aiming to boost capacity for AI, cloud, and government clients.
- Put and call option secured for $240 million land purchase in Sydney
- New data centre campus planned to deliver over 150 MW IT load
- Campus designed for hyperscale, AI, cloud, and government workloads
- Acquisition subject to subdivision and development approvals
- Funding to come from cash reserves and corporate debt, with future financing options considered
Strategic Land Option for Sydney Data Centre Campus
Macquarie Technology Group Limited (ASX, MAQ) has taken a significant step toward expanding its data centre footprint with a put and call option agreement to acquire a large parcel of land in Sydney. This move, executed through its wholly owned Macquarie Data Centres Group subsidiary, positions the company to develop a new hyperscale data centre campus designed to meet the growing demands of AI, cloud computing, and government workloads.
The proposed campus is expected to deliver more than 150 megawatts of IT load capacity, a substantial addition that aligns with Macquarie’s strategy to build campus-style data centres in highly sought-after urban locations. The site’s proximity to a major electricity substation and its location within an existing availability zone underscore its strategic value for high-density, energy-intensive operations.
Conditional Acquisition and Funding Plans
The acquisition is contingent on subdivision and development approvals, a process anticipated to take several months. Upon successful subdivision, either party can exercise the option to complete the $240 million purchase. Macquarie plans to fund this initial outlay through existing cash reserves and its corporate debt facility, reflecting a balanced approach to capital deployment.
Looking ahead, the company intends to explore a range of financing alternatives, including project finance and attracting long-term infrastructure investors, to support the phased construction of the campus over the coming years. This measured approach allows Macquarie to manage risk while positioning itself to capitalize on evolving market demand.
Complementing Existing Developments and Long-Term Capacity Pipeline
This new campus complements Macquarie’s ongoing IC3 SuperWest data centre development, which remains on track for Phase 1 completion by September 2026. Subsequent phases will roll out progressively to meet customer demand, ensuring a steady pipeline of capacity. Together, these projects aim to secure Macquarie’s position as a leading provider of secure, sovereign, and compliant data centre services for mid to large businesses and government clients over the next 7 to 10 years.
Macquarie’s focus on hyperscale and AI workloads reflects broader industry trends, where demand for cloud infrastructure and data processing power continues to accelerate. By securing this land option, the company is proactively preparing to meet these future needs in one of Australia’s most competitive real estate markets.
Bottom Line?
Macquarie’s land option signals a bold expansion that could reshape Sydney’s data centre landscape, pending approvals and funding clarity.
Questions in the middle?
- When will subdivision and development approvals be finalized, and what are the risks of delay?
- What financing structures will Macquarie pursue beyond initial cash and debt funding?
- How will this new campus impact Macquarie’s competitive positioning against other hyperscale data centre providers?
