Investment at record pace
Commonwealth Bank estimates data centre construction will add roughly six percentage points to real business investment growth in Australia in 2026, and around five percentage points in 2027. Private capital expenditure in the information, media and telecommunications sector rose almost 90% in the first quarter of 2026 compared with a year earlier, a pace of growth well ahead of most other parts of the commercial property market.
What is driving demand
AI deployment, cloud adoption and enterprise digitisation continue to drive structural demand for local, secure data infrastructure. Cushman & Wakefield's 2026 outlook names data centres, alongside cold storage and advanced manufacturing, as the three areas tipped for the strongest commercial property growth this year, with demand continuing to outstrip available supply.
The constraints holding growth back
Unlike office or industrial development, data centre growth is not primarily limited by capital. Sites are restricted to locations with adequate power, water and fibre connectivity, which narrows development to a small number of specific precincts regardless of investor appetite. Yields on institutional-grade data centre assets can run as low as 4%, and data sovereignty requirements continue to limit the realistic buyer pool largely to major institutional investors rather than a broader market of owner-occupiers or private buyers.
How individual investors get exposure
Direct data centre ownership is largely closed to individual investors given the yield and access constraints described above, but listed markets offer a practical way in. On the ASX, NextDC (NXT) is Australia's only pure-play data centre operator, while DigiCo Infrastructure REIT (DGT) is a newer dedicated listing. Goodman Group (GMG) and Macquarie Technology Group (MAQ) offer diversified exposure alongside their core industrial and technology businesses respectively.
Globally, Equinix (EQIX) and Digital Realty Trust (DLR) are the two largest listed data centre REITs, both accessible to Australian investors through brokers offering US market access. Investors who prefer diversified exposure over individual stock selection can consider the Global X Data Center & Digital Infrastructure ETF (DTCR), which holds more than two dozen global companies in the sector, with Equinix and Digital Realty as its largest holdings.
This is general information, not investment advice. Listed data centre securities carry different risks to the physical asset, including broader equity market volatility.