Australian real estate investment trust Centuria Industrial REIT (CIP), best known for its industrial warehouse portfolio, is positioning itself as a significant player in the country's rapidly expanding data center market. In its fiscal year 2026 results, the company outlined plans to develop more than 250MW of capacity across its existing data center campuses and potential industrial redevelopment sites, signaling a strategic pivot toward digital infrastructure.
The move comes as Australia's data center sector grapples with a supply-demand imbalance. According to Centuria, demand is now outpacing supply, driven by accelerated digital transformation and the growing adoption of artificial intelligence across industries. The company said it currently owns three data center sites, two of which could be expanded, and has filed power applications for three industrial properties identified as potential data center development projects.
"CIP continues to leverage its exposure to the data center sector. Australia's data center market is experiencing substantial growth, with demand now outpacing supply amid accelerated digital transformation and AI adoption. Our recent acquisitions and development initiatives in this space, including the lodged DA for a new 40MW data center, position CIP to capture outsized benefits from one of the fastest-growing segments in real asset investment," said Jesse Curtis, Centuria's head of funds management.
Centuria's existing portfolio includes a Telstra data center in Melbourne, Victoria, acquired in 2020 through a sale-leaseback deal. The 12MW facility, which opened in 2014, is slated for expansion, with plans for a new 40MW facility at the site that could go live by 2029. The company also owns a Fujitsu-occupied data center in Perth's Malaga area and the Wellcamp Data Centre in Toowoomba, Queensland.
In January 2026, Centuria acquired the Wellcamp facility from Pulse Properties for AU$30 million. The 3,565-square-meter data center, established in 2018 and operated by Pulse DC, currently offers 2.5MW of capacity and sits on a 5.7-hectare site with expansion potential. Centuria DC is now the lessee under a 15-year lease, according to the company.
Beyond its existing assets, Centuria has identified several industrial sites for potential conversion. The 1 Hardie and 2-8 Cawley Road warehouse site in Melbourne's Yarraville area, acquired in late 2025 for AU$30.2 million (US$21.29 million), is being evaluated for data center development. While the site is leased to its current tenant until 2028, Centuria said a pathway to power is "in progress."
In Thomastown, Victoria, the company is exploring redevelopment of two industrial facilities spanning 10.6 hectares, with leases running until 2027 and 2031. Centuria has filed a power application with VicGrid and AusNet, noting the site could have "significant" power availability, with the first phase potentially going live as early as 2029. Similarly, in Hazelmere, Western Australia, the firm has submitted a power application to develop a data center on its 6-hectare industrial site.
Centuria Capital Group, the parent entity of the ASX-listed trust and Australia's largest domestic pure-play industrial REIT, also holds a substantial stake in local cloud provider ResetData, which specializes in immersion-cooled equipment for sovereign cloud offerings. ResetData, which occupies space at the Centuria-managed 818 Bourke Street property in Melbourne, is targeting 200MW of capacity in the near future across both Centuria sites and third-party locations.
Industry analysts note that the push by traditional real estate players into data center development reflects a broader trend, as investors seek exposure to the high-growth digital infrastructure sector. With power availability emerging as a critical constraint across Australian markets, Centuria's early engagement with grid operators and its existing industrial footprint could provide a competitive advantage in a market where supply continues to lag behind surging demand.