Unlocking potential
Australia has the scale, geography and renewable energy potential to be a leading global data centre market. As cloud adoption, AI and data sovereignty reshape the digital economy, data centres have evolved from niche assets into essential national infrastructure.
Yet, momentum is meeting constraint. Power availability, planning complexity and infrastructure bottlenecks are slowing progress, while regulatory and ESG expectations continue to rise. The opportunity is clear, but execution risk is becoming the defining issue.
Unlocking Australia’s potential will require faster approvals, clearer policy recognition and greater certainty on grid connection. With these foundations, capital will flow, innovation will accelerate and Australia can cement its position as a leading digital infrastructure market.
A rapidly evolving landscape
Opportunities and how we can help
Rapid growth and increasing complexity are expanding the opportunity across the full data centre lifecycle.
As cloud, AI and data-intensive demand accelerate, clients need support from financing, site acquisition and planning through to construction, operations and expansion. We've helped clients through every stage of the lifecycle and are well placed to provide integrated, end-to-end advice across each stage.
The most valuable work is shifting to earlier in the lifecycle, where key decisions are made.
Issues around site selection, energy access, structuring and regulatory strategy are being addressed well before financial close, shaping downstream outcomes. We help clients engage early, and to navigate complexity and position projects for long-term success.
Capital flows and investment structures are becoming more sophisticated and dynamic.
Increased M&A, joint ventures and complex capital partnerships involving cross-border capital are driving more complex transactions, with offtake arrangements and FIRB considerations playing a central role in shaping deal structures, alongside increasingly complex financing structures. We support clients across the full spectrum of capital structuring and investment activity.
Energy access and decarbonisation are becoming central to project viability.
Power constraints are influencing where and when projects proceed, with clients pursuing PPAs, storage and on-site generation solutions. We bring together energy, infrastructure and regulatory expertise to support these integrated strategies. We also work with clients on the growing ESG regulations, community engagement and social licencing aspects of a data centre.
Delivery risk and cross-sector convergence are raising the bar on execution.
Construction complexity, supply chain disruption and overlap with critical infrastructure regulations are increasing both risk and opportunity. We help clients manage risk and deliver projects through coordinated, multi-disciplinary advice.
Our data centre experience
Allens advises across the full data centre lifecycle, bringing together experts from energy, planning, infrastructure and technology, to financing, M&A and tax, helping clients navigate complexity and deliver critical infrastructure for Australia’s digital economy. This extends across the entire data centre ecosystem, where we advise hyperscalers and AI infrastructure providers, developers and operators, infrastructure investors and capital providers, construction and engineering contractors and energy and network providers.
Stockland's data centre capital partnership
'This landmark capital partnership underscores the central role of data centres as a rapidly growing driver of development across Australia.' Victoria Holthouse
- Allens has advised Stockland on a capital partnership with data centre operator EdgeConneX to develop, own and operate an Australian portfolio of data centres.
- The partnership will combine Stockland’s land, development and project management expertise with EdgeConneX’s global experience in providing data centre solutions to cloud and AI providers.
La Caisse's $1.7bn commitment in NEXTDC hybrid securities
'It further reinforces the underlying strength of Australia as a location for AI infrastructure investment and growth' Gavin Smith
- Allens has advised La Caisse, a global investment group based in Québec, Canada, on its $1.7 billion commitment in hybrid securities to be issued by NEXTDC Limited, Australia’s largest listed data centre developer.
- The hybrid securities will provide flexible, long-term capital to support NEXTDC’s expanding pipeline of data centre developments across Australia, responding to surging demand for digital infrastructure driven by AI.
Keppel's proposed 720MW data centre campus
'This project represents a transformational opportunity for Australia's digital and AI infrastructure landscape.' David McLeish
- Allens has advised Keppel on its proposed development of a 720MW data centre campus on a 123 hectare site near Victoria's former Hazelwood power station.
- Allens advised Keppel on all aspects of the transaction, including structuring, securing development and acquisition rights, power and network connection, FIRB, financing and competition consideration.
PEP's acquisition of interest in data centre business
Allens has advised a syndicate of domestic and international banks on a senior secured financing package to support Pacific Equity Partners' (PEP) acquisition of a 75% interest in the data centre business of Spark New Zealand.
Blackstone's US$10bn financing of Firmus Group
Allens has advised Blackstone on AI infrastructure company Firmus’ US$10 billion debt financing facility, led by funds managed by Blackstone Tactical Opportunities, Blackstone Credit & Insurance, and affiliated funds, with participation from Coatue.
IREN's US$1b convertible senior notes offering
Allens has advised IREN Limited on the Australian law aspects of its US$1 billion offering of convertible senior notes
