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Goodman Group announces $80bn data center development opportunity

February 16, 2024 - Real estate company Goodman Group claims it has the power capacity available to develop a portfolio of data centers worth $80bn over the next five to seven years.


Shared as part of its half-yearly results announcement on February 15, the company said it has added 300MW to its "power bank" since November 2023, bringing its total availability to 4GW.


That power capacity is split globally, with 200MW available in Los Angeles, 1.5GW available across Europe and the UK in locations including London, Amsterdam, Frankfurt, Paris, and Madrid, 1.5GW available, and 300MW delivered in Asia across Tokyo, Osaka, and Hong Kong, and 400MW available and 200MW delivered in Australia and New Zealand in Sydney, Melbourne, and Auckland.


According to the company's results, Goodman has projects work in progress (WIP) totaling $12.9 billion. Of the WIP, 37 percent is data center projects and 58 percent is pre-committed, with an average lease of 14 years.


The company is placing a lot of emphasis on its data center business, with CEO Greg Goodman noting that data centers will be a "key area of growth."


Goodman Group deferred a number of sites in 2023, as the company was exploring 'intensification or conversion to data centers', and is now looking to follow through on those plans.


Its earnings presentation added: "Note that a significant volume of our directly owned sites have potential for redevelopment [as data centers], and therefore a potentially greater portion of the development activity could be originated on the group’s balance sheet in the future. This would mean that a greater portion of the return achieved, through sales, can generate operating profit as opposed to valuation gains."


Greg Goodman added: "Our growth in data center capacity underscores our ability to deliver digital infrastructure, where we’re securing power on our sites and developing data centers in cities with high demand."


Goodman builds business parks, industrial and warehouse/logistics space, and data centers. The company's operating profit was up 29 percent year-on-year, to $1.127bn. It has available liquidity of $3bn.


In January 2024, Goodman Group committed to developing 1GW of data center capacity in Tsukuba City, Japan, and kicked off construction of a 50MW data center in Tsuen Wan, Hong Kong.

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