Australian data center firm GreenSquare has unveiled plans to develop a new hyperscale facility in Melbourne, Victoria, marking its entry into the state's rapidly growing digital infrastructure market. The proposed project, known as MEL1, is slated for a site at 44–76 Simcock Avenue in the Spotswood industrial precinct and is designed to deliver up to 240MW of IT capacity across three stories.
The company said the facility is expected to become operational in 2027 and will employ a closed-loop hybrid cooling system that recirculates water and operates water-free for most of the year. This design reflects the broader industry push toward sustainable data center operations, particularly in regions where water scarcity and energy efficiency are becoming critical considerations for both developers and regulators.
GreenSquare selected the Spotswood location because it sits within an established industrial area with direct access to existing transport and digital infrastructure, which the firm says will accelerate construction timelines and reduce logistical complexity. The company has already filed a planning application with the Victoria Department of Transport and Planning, signaling that the project is advancing through the formal approval process.
The site has a notable industrial history, having previously housed a petrochemical storage depot. Real estate firm Time & Place was reportedly in talks to acquire the land from Mobil as early as 2020, according to local press reports.
GreenSquare, originally launched as GreenSquareDC in October 2022, was acquired by Swiss private equity firm Partners Group in March 2025. The company initially began with plans for a development in Perth, Western Australia, but abandoned that project earlier this year. It is currently progressing a separate development on a former IBM site in Sydney, New South Wales.
The Melbourne expansion comes at a time when Australia's data center market is experiencing significant growth, driven by rising cloud adoption, artificial intelligence workloads, and increasing demand for localized digital services. Industry analysts note that the country's east coast, particularly Melbourne and Sydney, has emerged as a key hub for hyperscale investment, with developers racing to secure land and power capacity in well-connected industrial zones.
For GreenSquare, the MEL1 project represents a strategic pivot toward Australia's largest data center markets after the Perth withdrawal. With Partners Group's backing, the firm is positioning itself to compete for enterprise and cloud customers seeking large-scale, energy-efficient capacity in Victoria. The success of the project will depend on timely planning approvals and the availability of grid power, both of which are becoming more challenging across the region as demand surges.