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The Australian technology giant is considering “a range of potential funding alternatives” to support the project
Earlier this week, Macquarie Technology Group revealed to investors that it was exploring funding options for a new 150MW data centre campus project, aiming to meet the expected boom in demand for AI and cloud computing.
The new campus would require between $2.5 billion and $3 billion in capital, excluding land value.
Speaking to investors on Tuesday, CEO David Tudehope said that the company was currently exploring its options for financing the data centre build out at the optioned location. One possibility would be to recycle capital by selling off a stake in the company’s more mature data centre assets. Alternatively, Macquarie could also partner with a third-party to create a joint venture.
“Funding for the new campus […] will come from recycled capital from the existing data centres and/or a development partnership,” said Tudehope, as reported in the Financial Review. “Both of those ideas are quite common overseas but are less common in Australia.”
The tech company has already struck a deal for the required land in Sydney for $240 million earlier this year, to be funded through cash reserves and debt.
Macquarie has been investing in data centres since 2018, with its flagship project taking place at the Macquarie Park Data Centre Campus in Sydney. Phase 1 of the site’s development, known as Sydney IC3 East, was completed in 2020, providing over 12MW of capacity. Phase 2, will see the site scaled further with the construction of the IC3 Super West data centre, bringing total capacity to 65MW.
Construction on C3 Super West began last year and is expected to be complete by Q3 2026. Macquarie extended its loan facilities to $450 million last year to facilitate this expansion.
Combining these existing assets with the planned 150MW would make Macquarie one of the largest data centre providers in Australia.
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