ASIA PACIFIC DATA CENTRE H1 2025 UPDATE

SYDNEY ASIA PACIFIC PRIMARY MARKET

H1 2025 KEY INDICATORS*

733MW In Operation

874MW Planned

5.2% Colo Vacancy

232MW Under Construction

20 Operators

49 # of Data Centres

MARKET OVERVIEW Sydney’s data centre market continued its upward trajectory in H1 2025, underscoring the city’s growing importance as a regional data centre hub. Despite the absence of major additions to operational capacity during this period, the market demonstrated robust fundamentals. Notably, the vacancy rate declined sharply from 9% to 5.2%, reflecting sustained demand for cloud services and artificial intelligence (AI) workloads. The development pipeline remained active, with new entrants continuing to enter the data centre segment. In addition to Doma Infra and Markham entry in H2 2024, ISPT, a prominent real estate investment firm, submitted an application to develop a 170MW data centre in North Ryde, further reinforcing Sydney’s strategic appeal. Macquarie Data Centres entered into a put and call option agreement to acquire a land parcel in Sydney valued at US$157 million. The site is earmarked for a potential 150MW data centre campus. Meanwhile, Stack Infrastructure is planning a significant 450MW campus at Erskine Park, with an initial investment of US$405.3 million, marking one of the largest single-site developments in Sydney. In a notable acquisition transaction, Partners Group, in addition to acquiring Digital Halo in Singapore, acquired GreenSquareDC in Australia. The Group has committed US$759 million to establish GreenSquareDC as a next-generation data centre platform catering the demand from hyperscalers and AI. The fibre and enterprise connectivity segment also saw major consolidation activity. Vocus Group is set to acquire TPG Telecom’s fibre infrastructure assets and its Enterprise, Government, and Wholesale (EG&W) fixed business. The Australian government has approved the US$3.42billion deal, which is expected to close by year-end. Cloud adoption continues to accelerate in this market. The Commonwealth Bank of Australia (CommBank) completed its migration to Amazon Web Services (AWS), while the Department of Defence signed a five-year, US$324.71 million agreement with Microsoft for cloud services. CareSuper, a leading superannuation fund, also announced plans to transition its applications and data to Microsoft Azure. Overall, Sydney’s data centre market remains resilient and dynamic, supported by strong demand fundamentals, strategic investments, and continued digital transformation across sectors.

Colo Hyperscale Self-build

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW