Global Switch Australia, a major data centre operator, is undergoing a significant transformation by shifting to Australian ownership. This move, orchestrated by parent company HMC, will see its twin Sydney data centres become the foundation for a new real estate investment trust (REIT) listed on the ASX. The change aims to address long-standing government concerns over foreign ownership and unlock new growth opportunities in the booming digital infrastructure sector.
A Strategic Shift to Local Ownership
For years, Global Switch Australia’s foreign ownership has been a point of friction, particularly for its government clients. This has led to some tenants, including the Defence Department, making plans to vacate the facilities due to data sovereignty and security concerns.
Executive Chairman John Corcoran acknowledged these challenges, stating the time is right for this transition. The new Australian ownership structure is designed to rebuild trust and align the company with national interests. This strategic pivot is seen as essential for securing the company’s future and attracting sensitive government and enterprise clients back to its platform.
Powering Up for an AI-Driven Future
A cornerstone of the new strategy is a massive upgrade to the Sydney data centres. The company plans a “densification and optimisation” project that will more than triple its power capacity.
This expansion is not just about adding more racks; it is about re-engineering the facilities to meet the intense demands of modern technology. The upgrade will specifically support the rise of artificial intelligence and other high-performance computing workloads, which require significantly more power and advanced cooling solutions. CEO Damon Reid highlighted that this investment positions the business at the forefront of technological change.
Here is a quick look at the planned enhancements:
- Capacity Increase: From a current 26MW to a projected 88MW.
- Efficiency Focus: Major improvements to energy and water usage.
- Future-Proofing: Infrastructure designed for AI and cloud services.
Fueling Expansion with Fresh Capital
To fund the acquisition and subsequent growth, Global Switch’s parent company, HMC, is launching a substantial equity raise of approximately $300 million. This capital injection is crucial for executing the ambitious capacity expansion and ensuring a smooth transition to the new ownership model under the REIT.
However, the company’s ambitions are not limited to Australia. HMC has also expressed a strong interest in acquiring hyperscale data centre assets in North America. This move would diversify the REIT’s portfolio, provide access to the world’s largest data centre market, and establish the new entity as a significant global player in digital infrastructure.
| Metric | Current Status | Future Goal |
|---|---|---|
| Ownership | Foreign-held | Australian-owned REIT |
| Power Capacity | 26MW | 88MW |
| Key Focus | General Colocation | AI & High-Performance Computing |
Realigning with Government Standards
A critical step in rebuilding relationships with government agencies is formal certification. CEO Damon Reid confirmed that Global Switch will work to get its facilities certified under the Australian government’s Hosting Certification Framework.
This framework sets stringent standards for data hosting services, covering critical areas like data sovereignty, privacy, and security protocols. Achieving this certification is non-negotiable for any provider wanting to host sensitive government data. It will serve as a clear signal that Global Switch is a trusted and secure partner for Australia’s critical national infrastructure, opening doors to new and renewed government contracts.
