As Australia positions itself at the forefront of the Asia-Pacific’s digital infrastructure race, data centres have emerged as one of the most strategic and complex investment opportunities of our time. With demand for AI, cloud computing and sovereign data storage accelerating, the sector is undergoing rapid transformation and Allens is helping clients navigate every step.
Here’s why this space is so exciting:
- · By 2030, data centres could be using up to 15% of Australia’s electricity. These facilities are already consuming around 5%, and that figure is climbing fast as AI workloads grow.
- · They’re now considered ‘national security businesses’. FIRB approvals, hosting certifications and data sovereignty rules mean these assets are subject to some of the most rigorous oversight in the country.
- · Australia is uniquely placed to lead. With abundant land, political stability and access to renewable energy, we’re seeing billions in investment flow into local developments, from hyperscale campuses to edge facilities.
From advising on landmark transactions like the $2.12 billion sale of Global Switch’s Australian operations, to supporting developers and investors through planning, financing and regulatory hurdles, we continue to work alongside clients on their most strategic investments in emerging sectors.
Advising on the investments shaping Australia’s digital economy
We’re working closely with clients across the full spectrum of data centre development. Planning and development is a key focus, with our team helping navigate fast-tracked approvals in NSW and Victoria, while untangling more complex zoning and infrastructure charge issues elsewhere. At the same time, energy and ESG considerations are front and centre; from co-locating with renewables to managing emissions and water use, we’re helping clients align their operations with sustainability goals and financing strategies.
On the commercial side, we’re advising on financing innovation, including core-plus infrastructure models, portfolio-based approaches and emerging asset-backed securitisation. Our team is also guiding clients through regulatory compliance, including FIRB approvals and Hosting Certification Framework requirements, which are increasingly shaping who can invest and operate in this space. And when it comes to real estate and infrastructure strategy, we’re helping structure delivery models that balance development risk, operational control and long-term yield.
The data centre boom is creating new opportunities (and new complexities) for investors, developers and operators alike. We’re proud to be working alongside our clients to turn ambition into action in one of Australia’s most dynamic emerging sectors.
To learn more, catch up on our recent Insight, Navigating the six key issues affecting data centre investment and operation.