AU$1.1 Billion Data Center Campus Proposed in Melbourne’s Southeastern Suburb

A major data center campus is being planned for Clyde North, a suburb approximately 53 kilometers southeast of central Melbourne, Australia. The City of Casey, the local government authority, confirmed this week that it has received a planning permit application for the proposed development at 585 Berwick-Cranbourne Road. This marks the first application of its kind for the municipality, signaling a potential expansion of Australia’s data center infrastructure into new growth corridors.

The project, proposed by an unnamed company, could involve an investment of up to AU$1.1 billion (US$769 million). While full details of the campus have not been disclosed, the application has already drawn six objections on the City of Casey’s planning portal. The site, located on the corner of Thompsons Road and Berwick-Cranbourne Road, covers approximately 53.6 hectares and sits within the Urban Growth Zone, an area designated by the Victorian Government for future development.

City planning officers are currently reviewing the application and have requested additional information from the developer. City of Casey Mayor, Cr Stefan Koomen, emphasized that councilors have not yet been asked to make a decision. “It would be inappropriate to form a view before all relevant information has been received. We are committed to ensuring a thorough, fair and transparent process that considers the impacts of this significant proposal and the best interests of our community,” he said.

The land was acquired by real estate firm Galileo Group for AU$130 million (US$90.89 million) in November 2022 and is still listed on the company’s website. The development aligns with broader trends in the region, as Melbourne solidifies its position as Australia’s second-largest data center hub behind Sydney. Recent weeks have seen a flurry of similar applications, including a proposed campus at 45 Donnybrook Road in Mickleham, north of Melbourne, where up to seven buildings are planned within the 67-hectare Fusion Business Park. That site, owned by real estate firm McMullin, is located near the Kalkallo Zone Substation, though the applicant remains unnamed. Speculation links the project to AirTrunk or Amazon, according to industry sources.

Additionally, Australian real estate firm Goodman filed a proposal in July to develop three two-story data center buildings at 433 Mount Atkinson Road in Truganina, around 30 kilometers west of Melbourne. The land was previously owned by Logos, now owned by ESR. These concurrent applications underscore the growing demand for digital infrastructure in Victoria, driven by cloud adoption and AI workloads. The Clyde North project, if approved, would represent one of the largest single investments in the region’s data center market, potentially reshaping the local economic landscape and reinforcing Melbourne’s role as a critical node in the Asia-Pacific data network.