ASX: Macquarie Technology buys land in Sydney’s Macquarie Park for $3 billion data centre expansion
Construction of the development in Northern Sydney is expected to be completed in 2029.
Macquarie Technology has paid $240 million for about eight acres of land in Sydney as part of its plan for a $3 billion data centre expansion.
The Australian data centre company bought the more than 34,200 square metre light industrial zoned site using cash reserves and corporate debt, it said.
“Completion of the purchase is subject to standard settlement procedures and is expected to occur over the next few weeks,” the company said in a statement.
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Macquarie Tech said it was now eyeing ways to fund the cost of building the data centres, which is expected to use advanced air cooling technology that uses “limited water”.
Funding options include capital recycling, project finance, or new infrastructure investors.
The construction of the development is expected to be completed in late 2029.
“The campus will build on the Group’s recently announced partnership with Macquarie University and will provide practical hands on opportunities for students and researchers to utilise latest data centre, cyber security, AI and cloud technologies and the new Macquarie campus.”
Macquarie Tech’s shares, which have gained more than 30 per cent in the past few months, fell 0.2 per cent in morning trading on Thursday to $65.90.
The company’s shares reached a high of more than $78 this year as investors were bolstered by news the Australian government would back its expansion plans.
In March, the National Reconstruction Fund Corporation, a government-backed sovereign investor, announced it would park $200 million into Macquarie Technology.
Prime Minister Anthony Albanese on Wednesday unveiled new legal standards for artificial intelligence and data centres, setting up a framework to manage the rollout of the emerging technology which will be introduced in early 2027.
The government plans to require AI data centre operators to cover the cost of new energy generation over concerns from communities about the environmental impacts.
