Global Switch Australia, a key player in the digital infrastructure sector, has unveiled its ambitious plan to enhance its existing data centres located near Sydney’s CBD. These twin data centres will now serve as the seed assets in a broader digital infrastructure platform, which is set to be owned by a real estate investment trust (REIT). This trust is expected to list on the Australian Stock Exchange (ASX) in the near future.
Global Switch’s foreign ownership has long been a topic of concern, especially for government clients, but this shift to Australian ownership marks a fresh start for the company. The ownership transition aims to address past concerns and unlock the potential for further growth.
Powering Up: From 26MW to 88MW Capacity
Global Switch currently boasts a capacity of 26MW, but the new ownership under HMC has its sights set much higher. The company has announced plans for a “densification and optimisation” project that will increase the capacity to a massive 88MW. This expansion represents a significant boost in the data centre’s ability to handle high-performance computing demands.
- Planned capacity increase: from 26MW to 88MW
- Focus on improving energy and water efficiency
- Investments aimed at supporting AI and high-performance computing workloads
CEO Damon Reid of Global Switch Australia emphasized the importance of these upgrades, citing the project as a step toward meeting rising customer demands for more advanced infrastructure. As demand for AI and cloud services continues to surge, Reid sees this as a crucial moment for the business to position itself at the cutting edge of technological advances.
Equity Raise and Expanding Global Ambitions
In addition to its local upgrades, Global Switch’s parent company, HMC, announced it will raise about $300 million in equity as part of the purchase. This capital injection will be instrumental in facilitating the data centre’s growth and its transition to Australian ownership. But it doesn’t stop there.
HMC has also set its sights on expanding its reach globally. Specifically, it has mentioned its interest in acquiring North American hyperscale assets, which would further diversify the REIT’s portfolio and strengthen its position in the global market.
With an eye on expansion both locally and abroad, Global Switch is gearing up for a transformative period. The equity raise will provide the fuel needed for growth, while the potential acquisition of hyperscale assets would allow the company to expand its influence far beyond Australia.
Addressing Long-Standing Concerns Over Foreign Ownership
The transition of Global Switch Australia to Australian ownership comes after years of concern from government tenants regarding the company’s foreign ownership. Over time, some tenants have opted to leave the site, and others, such as the Defence Department, have plans to do so.
John Corcoran, Global Switch Australia’s executive chairman, acknowledged these challenges and stated that the timing is right for the business to transition to Australian ownership. The move is seen as a necessary step to ensure the company’s continued success and growth, particularly given the sensitivities surrounding data sovereignty.
Government Partnerships and the Hosting Certification Framework
As Global Switch transitions to being a fully Australian-owned company, it is also taking steps to align more closely with Australian government requirements. CEO Damon Reid mentioned that the company will work with the government to obtain certification under the Hosting Certification Framework. This framework is crucial for government departments and agencies as it ensures that hosting services meet stringent privacy, sovereignty, and security standards.
Securing this certification will not only enhance Global Switch’s reputation but also pave the way for further collaborations with the government, ensuring that its services are trusted for critical national infrastructure.
