Macquarie Technology exercises call option on $240m Macquarie Park site
Macquarie Technology Group (ASX: MAQ) has announced that a wholly owned subsidiary within its Macquarie Data Centres business has exercised its call option to purchase a ~34,200sqm site in Macquarie Park for $240 million, securing the physical footprint for a major new data centre campus in one of Sydney’s key technology precincts.
The move follows the Company’s announcement on 14 July 2025, when a wholly owned subsidiary within its Macquarie Data Centres business entered into a put and call option to purchase the parcel of land. The option was exercised on 16 July 2026, following successful completion of the subdivision process.
Completion of the purchase remains subject to standard settlement procedures and is expected to occur over the next few weeks. The $240 million purchase price will be funded through existing cash reserves and the Group’s corporate debt facility.
The site is a light industrial zoned development parcel located between Talavera Road and the M2 motorway in Macquarie Park, positioning the Group to develop a new campus within a well-established Sydney technology hub.
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The $240m acquisition at a glance
| Item | Detail |
|---|---|
| Purchase price | $240 million |
| Site size | ~34,200sqm |
| Zoning | Light industrial development site |
| Location | Between Talavera Road and the M2 motorway, Macquarie Park |
| Purchase funding | Existing cash reserves + corporate debt facility |
| Option exercised | 16 July 2026 |
| Settlement | Expected over the next few weeks |
Plans for a ~200MW data centre and engineering campus
The Company intends to construct an engineering and technology campus co-located within a ~200MW data centre campus in Macquarie Park. Designs remain subject to obtaining planning and other approvals, and will be refined based on customer requirements, power approvals, construction staging, and funding.
The proposed facility is intended to be designed to incorporate advanced air cooling technology with limited water usage. Initial construction is estimated to be completed in late calendar year 2029, subject to planning and other approvals.
The development continues the Group’s campus-style approach to data centre infrastructure. While the purchase price funding is confirmed, the Company has stated it is exploring a range of options to fund construction, including but not limited to capital recycling of existing assets and development partnerships.
Development Highlight
A ~200MW data centre and engineering campus is proposed for the Macquarie Park site, with initial construction estimated for completion in late calendar year 2029, subject to approvals.
The Macquarie University partnership angle
The new campus is intended to support research, technology and learning opportunities in conjunction with Macquarie University, building on the Group’s recently announced partnership with the institution. The campus is designed to provide practical, hands-on opportunities for students and researchers.
Practical opportunities identified for students and researchers include:
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Hands-on access to the latest data centre, cyber security, AI, and cloud technologies
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Direct experience in technology and engineering in collaboration with industry
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Pathways for students and academics to build careers in the sector
Why data centre capacity matters to investors
That said, the development remains at an early stage, with designs, timelines and construction funding all subject to future decisions and approvals.
Community benefits built into the development
The Company is planning to provide community benefits to the local area as part of the development, all of which remain subject to obtaining the requisite approvals. These proposed contributions are designed to convert part of the currently neglected industrial site into shared community spaces.
The proposed community contributions include:
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A more than one-acre multi-generational park with recreational and community-use areas, converting part of the neglected industrial site
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A large community garden for City of Ryde residents
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A new outdoor art gallery showcasing the creative talent of the local community, Macquarie University students and faculty, local history and connection to country
According to the Company, this contribution reflects Macquarie’s 16-year record of support for City of Ryde communities, spanning early childhood literacy, career planning for high school students, and university graduate pathways.
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What comes next for Macquarie Technology Group
Settlement of the purchase is expected to be completed over the coming weeks, after which the planning and development application process lies ahead. The Company has indicated that further detail on the proposed development will be shared with community and investors during that process.
Construction funding decisions remain pending. The Company has reiterated that it is exploring options including capital recycling of existing assets and development partnerships, meaning construction is not yet fully funded.
The Group’s capital position has been bolstered ahead of this commitment, with a $200 million hybrid investment from the National Reconstruction Fund Corporation targeting sovereign cloud expansion, AI capabilities, and cyber security services across its Cloud Services and Government segment.
The Group has set a target for initial construction to be completed in late calendar year 2029, subject to planning and other approvals. The acquisition positions the Company for long-term expansion of its data centre footprint in Macquarie Park, though timelines and construction funding remain subject to approvals and future decisions.
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