PGIM Acquires Major Melbourne Site for $1.2 Billion Data Center Development
February 11, 2026
In a significant move underscoring the sustained global demand for digital infrastructure, PGIM Real Estate has secured a strategic land parcel in Melbourne, Australia, for the development of a large-scale data center campus with an initial investment of AU$1.2 billion (approximately $850 million). The acquisition highlights the continued attractiveness of the Asia-Pacific region, and Australia in particular, to institutional capital seeking exposure to the essential infrastructure underpinning cloud computing and artificial intelligence. The global investment manager purchased the 20.7-hectare (approximately 51 acres) site on Oroya Drive in Melbourne's Truganina suburb through its dedicated Global Data Center Fund. While PGIM did not disclose the exact purchase price, industry reports indicate the firm paid around AU$165.6 million ($117.9 million) for the land, equating to roughly AU$8 million per hectare. The company has outlined a three-stage development plan for the location, with the first phase alone budgeted at AU$1.2 billion. Specific capacity targets and construction timelines for the future facility have not yet been released. Morgan Laughlin, Global Head of Data Center Investments at PGIM Real Estate, emphasized the strategic rationale behind the investment, stating, "Demand for digital infrastructure has remained strong, with many leading hyperscalers announcing plans to develop or take up a significant amount of capacity in and around Melbourne." According to local media, PGIM is also in advanced discussions to acquire a second data center site in the Melbourne metropolitan area, signaling a deeper commitment to the market. This transaction is a key deployment from PGIM's $2 billion Global Data Center Fund, which closed its fundraising in 2025. The fund represents PGIM's formalized strategy in the sector, building on over a decade of prior investments, including joint ventures with Equinix to develop hyperscale facilities in Australia and the United States, and a recent land acquisition in Munich, Germany, for a 30MW data center project. The Melbourne development is poised to bolster the city's position as a critical hub for data processing in the region, catering to the expanding needs of both international hyperscalers and domestic enterprises.
Source: datacenterdynamics
