Stockland Data Center Plans in Western Sydney

Stockland, a prominent Australian property developer, is advancing its strategic pivot into the digital infrastructure arena with a significant new development proposal. The company has submitted plans to the New South Wales government for a substantial 168-megawatt data center campus situated in Kemps Creek, a key growth corridor in Western Sydney. This move signals a deepening commitment to the hyperscale data center market, a sector experiencing robust demand driven by cloud computing and artificial intelligence advancements.

The Kemps Creek initiative is being executed through Stockland's established 50:50 joint venture with global data center specialist EdgeConneX, a partnership formalized in March 2026. This collaboration leverages Stockland's extensive land portfolio and development acumen alongside EdgeConneX's proven track record in delivering critical infrastructure for leading cloud and AI providers. The project's filing utilizes New South Wales's State Significant Development pathway, designed to expedite approvals for major infrastructure investments, underscoring the project's strategic importance.

This filing is part of a broader strategic push by Stockland, which has secured endorsement for three data center projects through the NSW Investment Delivery Authority. These projects are part of a larger pipeline valued at approximately AUD 51.9 billion (USD 32 billion) that the state is prioritizing for digital infrastructure development. Beyond Kemps Creek, Stockland's portfolio includes planned facilities in Wetherill Park and the City of Ryde, indicating a multi-site expansion strategy across New South Wales.

The company's ambition extends to Victoria as well, with plans to develop a total of approximately 450 MW of power capacity across its data center sites. This expansion is underpinned by a clear financial commitment from Stockland's leadership. CEO Tarun Gupta has outlined a plan to dedicate between 5% and 10% of the company's total capital over the next five years, representing an investment of roughly AUD 750 million to AUD 1.5 billion. This capital allocation will scale in response to demand from major cloud and AI operators.

Western Sydney, particularly the Kemps Creek area, has emerged as a prime location for data center development due to its availability of industrial land, robust power infrastructure, and supportive government policies. This region is already attracting significant investment from global players like Microsoft, NextDC, and Stack Infrastructure, highlighting its strategic importance in the Asia-Pacific digital economy. Sydney's current operational capacity of approximately 1.3 gigawatts places it as the third-largest market in the region.

Further demonstrating its commitment, Stockland recently received approval for another data center at its MPark precinct in Macquarie Park, Sydney. This facility, developed in conjunction with EdgeConneX, will offer 76.4 MW of capacity with an estimated project value of AUD 718 million (USD 460 million). Construction for the second stage of this MPark project is slated to begin in FY2027, showcasing the rapid pace of development within Stockland's digital infrastructure portfolio.