Highlights

  • Macquarie Technology Group exercised an option to acquire a 34,200 square metre site at Macquarie Park for A$240 million.
  • The company plans to develop a data centre campus with approximately 200MW of capacity, subject to approvals.
  • Construction funding for the proposed development has not yet been finalised.
  • FY26 EBITDA guidance remains between A$114 million and A$117 million.
  • The company is progressing IC3 Super West, with its first 6MW targeted for September 2026.

Macquarie Technology Group Limited (ASX: MAQ) is advancing its data centre expansion strategy after securing land for a proposed large-scale campus at Macquarie Park in Sydney.

The company announced on 16 July 2026 that a subsidiary of Macquarie Data Centres exercised its option to purchase a 34,200 square metre site for A$240 million. The planned development is expected to include approximately 200MW of data centre capacity alongside an engineering and technology campus.

The acquisition represents a significant step in the company’s long-term infrastructure plans; however, the proposed development remains subject to approvals, construction planning and funding arrangements.

Macquarie Park Site Acquisition and Development Plans

The acquired site is located at Macquarie Park and is intended to support the development of the Macquarie Engineering and Technology Campus.

Macquarie Technology Group has indicated that initial construction is targeted for late calendar 2029, subject to approvals and project progression. The proposed campus is expected to use advanced air cooling technology with limited water usage.

The company stated that the land purchase will be funded through existing cash reserves and its corporate debt facility. However, construction funding for the broader campus development has not yet been finalised.

Macquarie Technology Group is evaluating potential funding options, including capital recycling and development partnerships.

Existing Data Centre Operations Support Expansion Strategy

Macquarie Technology Group operates across three key business areas: Cloud Services and Government, Macquarie Data Centres and Macquarie Telecom.

The company provides managed cloud, cybersecurity, government hosting and data centre services. Government-related customers remain an important part of the business, with the company reporting that 42% of Australian Government agencies are customers.

The company’s existing data centre footprint includes approximately 21MW of installed capacity across five facilities. This includes IC1 in Sydney CBD, IC2 and IC3 East at Macquarie Park, and IC4 and IC5 in Canberra.

The IC3 Super West facility is also being developed, with the first 6MW expected to be available in September 2026.

Financial Performance and Capital Position

For the six months ended 31 December 2025, Macquarie Technology Group reported revenue of A$193.4 million, an increase of 5.3%.

Company-defined EBITDA was A$57.9 million, up 3.0%, while net profit after tax declined 8.9% to A$16.3 million due to increased depreciation associated with infrastructure investment.

Cloud Services and Government revenue increased 11.5% to A$115.9 million, while Data Centres revenue increased 9.4% to A$43.2 million. Macquarie Telecom revenue declined 7.7% to A$53.0 million.

At 31 December 2025, the company reported A$12.1 million in cash and non-current borrowings of A$56.5 million. The company later increased its debt facility capacity to A$500 million.

The company also secured A$200 million through hybrid securities from the National Reconstruction Fund Corporation. The securities are classified as equity under accounting standards.

IC3 Super West Development Progress

Alongside the Macquarie Park land acquisition, Macquarie Technology Group continues development of IC3 Super West.

The facility is expected to provide additional data centre capacity, with the first 6MW targeted for September 2026. The company has guided FY26 capital expenditure for IC3 Super West at A$180 million to A$190 million.

The broader IC3 Super West facility is planned to provide 47MW of IT load when fully developed.

The company’s FY26 EBITDA guidance remains between A$114 million and A$117 million, including Data Centres EBITDA guidance of A$40 million to A$41 million.

Future Development Considerations

The planned 200MW Macquarie Park campus represents a long-term expansion opportunity for the company. However, the project requires additional approvals, construction planning and funding arrangements before development can progress.

The company has indicated that it may use capital recycling or development partnerships to support future infrastructure investment.

Further updates regarding development approvals, funding arrangements and customer commitments will provide additional information about the project timeline.

Key Factors to Monitor

Future developments for Macquarie Technology Group will include the completion of IC3 Super West, progress on the Macquarie Park campus and the company’s approach to funding future construction.

The FY26 results are also expected to provide further information regarding earnings performance, capital expenditure and debt levels.

Other areas to monitor include data centre capacity utilisation and customer commitments for future facilities.

Conclusion

Macquarie Technology Group is expanding its data centre infrastructure footprint through the acquisition of a Macquarie Park site intended for a proposed 200MW campus. The A$240 million land purchase provides the company with additional development capacity as demand for data infrastructure continues to evolve.

However, the project remains at an early stage, with construction funding, approvals and future customer commitments still to be addressed. The company’s upcoming operational updates and financial results will provide further insight into the progress of its expansion plans.