DigiCo Secures Key Planning Approval for Major Sydney Data Centre Expansion
December 29, 2025
In a significant move for Australia's digital infrastructure landscape, DigiCo Infrastructure REIT, managed by HMC Capital, has obtained the crucial State Significant Development (SSD) approval for a major expansion of its SYD1 data centre in central Sydney. This approval underscores the accelerating demand for high-capacity, interconnected data centre space in the Asia-Pacific region, driven by cloud adoption, AI workloads, and digital transformation across industries.
The planning green light, announced on December 28, 2025, authorizes DigiCo to proceed with a densification and optimization program at its flagship Sydney facility. The project aims to significantly upgrade the site's total capacity to 88 megawatts (MW), a substantial increase that will cater to strong tenant demand. The approval follows the company's announcement in October 2025 to accelerate the SYD1 expansion after securing a series of new customer contracts.
Michael Juniper, the newly appointed CEO of DigiCo, welcomed the regulatory milestone. "We welcome the SSD approval which represents an important milestone in the program to upgrade capacity at DigiCo's SYD1 data centre to 88MW," Juniper stated. He added, "Our upgrade works are proceeding well, and we are excited by the outlook for SYD1 as Australia's most strategic and interconnected data centre asset, which is translating into strong tenant demand."
The expansion of SYD1 solidifies its position as a core digital infrastructure hub. For the broader industry, this development highlights the critical need for scalable data centre capacity in major metropolitan areas and the importance of strategic locations with robust connectivity. The project is expected to support growing data sovereignty requirements and provide essential infrastructure for enterprises and hyperscalers operating in the Australian market.
Source: capitalbrief
