Amazon's announcement of a AU$20 billion investment in Australian data centres marks the largest technology investment in the nation's history. Announced in June 2025 by AWS CEO Matt Garman alongside Prime Minister Anthony Albanese, this commitment signals a transformative moment for Australia's digital infrastructure and creates significant opportunities for investors in ASX data centre stocks.

With the Australian Government projecting that AI and automation could contribute up to AU$600 billion annually to GDP by 2030, the race to build AI-capable infrastructure is intensifying. For investors seeking exposure to this structural growth trend, understanding the dynamics and key players is essential.

The Scale of the AI Infrastructure Opportunity

Australia's data centre industry is entering a major growth phase. Deployable capacity is expected to more than double from about 1,350 MW in 2024 to over 3,100 MW by 2030, requiring around AU$26 billion in new investment.

Hyperscalers like Amazon Web Services, Microsoft, and Google are driving this surge. Microsoft committed AU$5 billion in October 2023 to expand its footprint to 29 centres across Sydney, Melbourne, and Canberra. AWS has pledged AU$20 billion between 2025 and 2029, a sign of how strategically important Australia has become for Asia-Pacific operations.

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Why Australia Stands Out

Several factors make Australia a natural hub for digital infrastructure. Its location offers close access to Asian markets, while political stability and strong regulations give investors confidence.

Just as important, Australia's renewable energy resources align with hyperscalers' sustainability goals. Amazon is building 11 solar and wind projects that will generate over 1.4 million megawatt hours of clean energy annually, helping power its centres while addressing concerns about the heavy electricity use of data centres.

Growing demand for sovereign AI infrastructure adds another layer. AWS secured a AU$2 billion contract in 2024 to build classified data centres for Australian defence and intelligence operations, highlighting government appetite for locally controlled digital infrastructure.

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Key Market Dynamics Investors Should Understand

AI workloads are reshaping how data centres operate. Unlike traditional cloud services, AI needs far more computing power, advanced cooling, and much higher energy use. Modern AI-ready centres can handle rack densities of 100 kW or more, compared to just 10–20 kW in older facilities. This creates opportunities for operators who can deliver specialised, high-capacity infrastructure at premium prices.

A major challenge is power supply. Getting connected to the grid can take years, making electricity availability the biggest bottleneck for new projects. Companies that have already secured power allocations enjoy a strong edge in serving hyperscaler demand.

The colocation market, where operators rent space to multiple tenants, is also growing fast. Industry analysis suggests revenues could rise from about AU$2.7 billion in 2024 to nearly AU$7.8 billion by 2030, representing a compound annual growth rate of around 19%.

 

Three ASX Stocks With Data Centre Exposure

NEXTDC (ASX: NXT) – Pure Data Centre Operator

NEXTDC is Australia's largest listed independent data centre company, with sites in Sydney, Melbourne, Brisbane, Perth, and Canberra, and plans to expand into Asia and New Zealand. By late November 2025, contracted utilisation had grown 29% to 316 MW, with its forward order book up 53% to 205 MW. A new agreement with OpenAI highlights its ability to attract major AI workloads. To support growth, NEXTDC lifted FY26 capital spending guidance by AU$400 million and secured AU$5.1 billion in debt facilities.

Consideration: The company is still in a heavy investment phase and reinvests earnings into expansion, so it does not currently pay dividends.

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Goodman Group (ASX: GMG) – Property Giant Pivoting to Data Centres

Goodman, Australia’s largest listed property group, is rapidly shifting towards data centres. As of September 2025, 68% of its AU$12.4 billion development pipeline was data centre projects, expected to exceed AU$17.5 billion by June 2026. Its key strength is a “power bank” of 5 GW secured electricity capacity across 13 global cities, including Sydney. Goodman plans to activate 500 MW of new capacity by June 2026, with a total pipeline of 1.8 GW.

Consideration: Despite strong operations, its share price is down 13% over the past year. It still targets 9% EPS growth in FY26 and retains AU$2 billion annually through dividends to fund expansion.

Macquarie Technology Group (ASX: MAQ) – Sovereign Infrastructure Specialist

Macquarie runs secure data centre campuses in Sydney and Canberra, certified by the Australian Government to host sensitive workloads. With 200+ NV1 security‑cleared engineers, it serves 42% of federal agencies. In July 2025, it bought land for a new Sydney campus expected to deliver 150 MW of IT load, while its IC3 SuperWest facility is on track for Phase 1 completion in September 2026.

Consideration: Smaller than NEXTDC and Goodman, with a market cap of about AU$2 billion. Morningstar recently lifted its fair value estimate to AU$70, citing confidence in returns. Its 25‑year track record adds credibility.

Risks and Considerations

While structural growth drivers for data centres appear robust, investors should weigh several factors. Power supply constraints could delay project completions or increase costs. Competition for hyperscaler contracts is intensifying globally. The capital-intensive nature of data centre development means these businesses require ongoing access to debt and equity markets.

Additionally, technology cycles in AI could shift demand patterns in unpredictable ways. While current projections assume continued growth in AI computing requirements, advances in efficiency or changes in AI development approaches could alter demand trajectories.

Key Takeaways

• Australia's data centre capacity is projected to more than double by 2030, supported by AU$26 billion in investment and driven by hyperscaler demand for AI-capable infrastructure
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• Three ASX-listed companies offer distinct exposure: NEXTDC as a pure-play operator, Goodman Group through its industrial property pivot, and Macquarie Technology Group via sovereign-certified facilities
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• Power availability has become the critical constraint, with operators who have secured grid connections holding competitive advantages

 The convergence of AI demand, hyperscaler investment, and Australia's strategic advantages creates a compelling backdrop for the data centre sector. For investors seeking growth exposure to this structural trend, these three ASX stocks represent different risk and return profiles within the same thematic opportunity.

 

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