Data centres are rewriting Australia's industrial real estate playbook.

Tech giants are paying premiums that would make traditional industrial developers pause. Amazon and Microsoft have paid more than double typical land values to secure properties suitable for data centre development.

The numbers tell the story clearly.

Local operators like NextDC and CDC purchased properties at Eastern Creek and Marsden Park for about $1,368 and $1,434 per square meter respectively. Traditional industrial rates hover around $1,250 per square meter in 2024.

That's a 10% premium for local players. Global tech companies push much harder.

Microsoft and Amazon have paid upwards of 100% above typical industrial land values in some transactions. The competition for sites with adequate power supply, water access, and strategic location within availability zones drives this premium pricing.

Market Impact Beyond Pricing

The transformation extends well beyond individual transactions.

About 30% of industrial land supply in Melbourne's north and outer north regions is currently in due-diligence for data centre development over the next three to five years.

This land might otherwise support logistics, warehousing, and manufacturing operations.

The ripple effects are pushing cost-sensitive industrial tenants toward outer-ring or less-serviced areas. Traditional industrial users face reduced supply in prime locations, creating a stratified market where technical requirements determine land values.

The Financing Implications

Australia's data centre market is valued at USD 6.81 billion in 2024, projected to reach USD 8.58 billion by 2030.

This growth creates complex financing challenges. Data centre developments require substantial upfront capital, specialised infrastructure, and long-term power commitments. Traditional industrial financing models often fall short.

Properties meeting data centre specifications command premium valuations, but they also require premium financing solutions. The technical due diligence process involves power grid capacity analysis, cooling system feasibility, and regulatory compliance across multiple jurisdictions.

Streamlining Complex Data Centre Finance

The specialised nature of data centre financing demands a more sophisticated approach than traditional industrial real estate deals.

At Lendhaus, we understand that data centre developments operate at the intersection of real estate, technology, and infrastructure financing. Our global marketplace connects property developers with financiers who specialise in these complex, capital-intensive projects.

The technical due diligence process for data centre properties involves power grid capacity analysis, cooling system feasibility, and regulatory compliance across multiple jurisdictions. Our platform streamlines this complexity by providing verified, comprehensive project documentation that meets the specific requirements of data centre financiers.

Through our network of 70 global financiers, we facilitate access to specialised funding sources that understand the unique risk profiles and capital requirements of data centre developments. This includes construction financing for power infrastructure, bridge funding for grid connection delays, and long-term facilities that align with the operational cash flows of hyperscale tenants.

The result is faster deal execution with greater certainty - critical factors when competing for premium data centre sites in Australia's rapidly evolving market.

Strategic Positioning for Investors

The market transformation creates distinct opportunities for different stakeholder types.

Property developers can explore partnerships with data centre operators, leveraging shared infrastructure costs and long-term lease commitments. Industrial property funds might consider mixed-use strategies, combining data centre components with traditional industrial spaces.

The key lies in understanding technical requirements early in the development process.

Power supply capacity, fiber connectivity, and cooling infrastructure determine whether a property can capture data centre premiums. These factors require specialised financing approaches that account for both construction complexity and operational requirements.

This is where sophisticated financing platforms become essential. The complexity of data centre projects - from specialised construction requirements to long-term power commitments - demands financiers who understand both the technical and commercial aspects of these developments.

The Australian industrial real estate market is experiencing fundamental repricing based on digital infrastructure capacity. Success requires understanding both the technical requirements driving premium valuations and the financing solutions needed to capitalise on this transformation. In this environment, having access to a global network of specialised financiers who can move at the speed of these competitive markets becomes a decisive advantage for developers and investors positioning themselves in Australia's data centre boom.