Former Exodus Data Center in Sydney, Australia, to Be Replaced with 70MW Facility

Why It Matters

The investment underscores accelerating cloud and enterprise workloads in APAC, positioning Digital Realty to capture market share as Fujitsu scales back its Australian data‑center footprint.

Key Takeaways

• Digital Realty plans 70MW, 23,375sqm Sydney data center.
• Project investment up to AU$700M (~US$482M).
• Replaces 4.8MW, 3,600sqm Fujitsu‑leased legacy site.
• Multi‑story design increases capacity eightfold.
• Highlights growing demand for hyperscale infrastructure in APAC.

Pulse Analysis

Australia’s data‑center market is entering a phase of rapid expansion, driven by surging cloud adoption, AI workloads, and stricter data‑sovereignty regulations. Enterprises and hyperscale providers alike are seeking higher power densities and scalable footprints, prompting developers to upgrade legacy sites rather than build on greenfield land. Digital Realty’s decision to replace the modest 4.8 MW Fujitsu hub with a 70 MW, eight‑floor campus aligns with this trend, offering the power and cooling infrastructure needed for next‑generation applications.

The Waterloo Road project builds on Digital Realty’s long‑term strategy of consolidating fragmented assets into high‑performance campuses. Acquired in 2013 for AU$11.75 million, the original site has been largely underutilized, making a AU$700 million redevelopment economically compelling. By delivering a multi‑story, 23,375 sqm facility, Digital Realty can achieve economies of scale, improve rack‑space efficiency, and attract a broader tenant mix, from regional enterprises to global hyperscalers. The upgrade also positions the company to meet emerging sustainability standards, as newer builds can integrate advanced cooling and renewable‑energy solutions more effectively than older single‑story structures.

For investors and industry observers, the project signals confidence in APAC’s long‑term data‑center demand curve. As Fujitsu appears to divest its Australian assets, Digital Realty stands to capture that customer base while reinforcing its market leadership. The sizable capital outlay, roughly US$482 million, reflects not only construction costs but also the premium placed on power‑rich sites near major network interconnects. In the broader context, such megaprojects are likely to accelerate competition among global providers, driving further innovation in modular design, energy efficiency, and service flexibility across the region.