Highlights

  • Construction of IC3 Super West was completed on schedule and on budget, with the first 6MW due for commissioning in September 2026.
  • H1 FY26 EBITDA rose to AUD 57.9 million, extending the group's run to 22 consecutive half-years of EBITDA growth.
  • FY26 IC3 Super West Capital Expenditure guidance is AUD 180-190 million, with another AUD 42-48 million of other capex.
  • The next question is whether new data-centre capacity converts into contracted Revenue fast enough to justify the Investment cycle.

Macquarie Technology Group has reached a visible milestone in its largest infrastructure build: IC3 Super West is constructed, with the first capacity due to come online in September. The heavy spending phase is therefore starting to shift toward a commercial test. What matters now is how quickly customers Fill the new Sydney capacity and whether the Earnings growth catches up with the capital already deployed.

Recent Developments

Macquarie Data Centres completed construction of IC3 Super West on schedule and on budget. Cabling and electrical fit-out are under way, with the first 6MW of IT load expected to be commissioned in September 2026. The Facility lifts total group campus capacity to 65MW across Sydney and Canberra and is much larger than the data centre opened in 2021.

The company also secured an additional AUD 50 million debt facility to accelerate fit-out, with the intention of bringing 19MW of capacity online faster than the initial 6MW rollout.

Why It Matters

Demand for Australian data-centre capacity is being supported by cloud adoption, sovereign data requirements and AI workloads that need dense computing and, increasingly, liquid cooling. Macquarie's position in government and sovereign cloud services gives it a differentiated customer base, while its recurring-contract model provides visibility in the existing Business .

The strategic opportunity is larger than IC3 Super West. The group holds a put-and-call option over land for a potential Sydney campus exceeding 150MW. That next project would be much larger and could require more than AUD 3 billion of Capital, making the Economics of the current build a critical proof point.

The Assets described above remain central to the company's valuation and strategic direction.

The recurring-revenue base gives the company some protection during the build-out. Management has said around 95% of group income is contracted monthly Recurring Revenue , which means the existing cloud, government, data-centre and telecom operations continue generating cash while new capacity is being commissioned.

Company Overview

Macquarie Technology Group operates through Cloud Services & Amp ; Government, Macquarie Data Centres and Macquarie Telecom. Its services include sovereign cloud, hosting, data-centre capacity, telecommunications and internet services. Management has said around 95% of group income is contracted monthly recurring Revenue, supporting relatively visible cash generation.

Financial Snapshot

For the half year to 31 December 2025, EBITDA was AUD 57.9 million, up from AUD 56.2 million a year earlier and representing the 22nd consecutive half-year of EBITDA growth. Operating Cash Flow was AUD 42.2 million, equivalent to 109% cash conversion. FY25 EBITDA was AUD 113.6 million and post-tax Operating Cash Flow was AUD 109.9 million.

The Investment cycle is substantial. FY25 Capital Expenditure was AUD 150.1 million, including AUD 106 million for IC3 Super West. Capex in the December half reached AUD 142.1 million, with AUD 120.9 million directed to the new campus. FY26 guidance points to AUD 180-190 million of IC3 spending plus AUD 42-48 million of other capex. The group had around AUD 393 million of undrawn Debt facilities at the half-year point before adding the new facility.

What to Watch

The first 6MW commissioning in September is the clearest near-term milestone. Leasing momentum will then show whether completed capacity is converting into contracted Revenue. FY26 results will also be assessed against group EBITDA guidance of AUD 114-117 million and Depreciation guidance of AUD 56-59 million. Any decision on the 150MW-plus land option and its proposed funding structure will be significant.

The proposed next Sydney campus is a longer-term reference point. Macquarie has an option over land for more than 150MW of capacity and has indicated a development of that scale could cost above AUD 3 billion. Any move to exercise the option will therefore need to be accompanied by a clear funding plan, potentially involving a joint venture or asset recycling.

Risks

The central risk is timing: Macquarie is spending Capital before the associated earnings arrive. If leasing is slower than expected, depreciation and financing costs can weigh on profit while new capacity sits underused. Future campuses may require asset sales, joint ventures or additional Debt, while hyperscale demand is concentrated among a relatively small group of large customers.

What Could Convert IC3 Capacity Into Earnings Growth

IC3 Super West has moved from construction risk to utilisation risk. Macquarie delivered the build on schedule and the demand backdrop remains supportive, but the economics will be determined by how quickly new megawatts are contracted and at what margins. The next year will show whether the capex cycle is translating into the earnings growth required to support the expansion strategy.