NATIONAL OVERVIEW
THE INDUSTRIAL LAND SHIFT | 10
SYDNEY MELBOURNE BRISBANE PERTH ADELAIDE CONTACT INFORMATION
Data Centres: A Structural Shift In Industrial Demand While much of the discussion surrounding data centres focuses on digital infrastructure, the more immediate real estate implication is land.
Data centre operators have become increasingly active participants in Australia's industrial land market, particularly across Sydney and Melbourne which have accounted for the majority of land transactions. Since 2018, data centre operators have acquired approximately 710 hectares of industrial land across Sydney and Melbourne, with a further wave of transactions to be announced in the coming months. Collectively, these acquisitions are estimated to have removed around 3.5 million sqm of future warehouse supply from the market, highlighting the growing competition between logistics and digital infrastructure users for industrial land. Unlike traditional industrial users, site selection is driven primarily by access to power capacity rather than transport infrastructure. As demand for AI and cloud computing infrastructure accelerates, power availability is expected to become an increasingly important determinant of
Sydney & Melbourne Data Centre Industrial Land Take-up (hectares)
710 hectares Industrial land take-up from data centres in Sydney and Melbourne since 2018
350
300
250
200
26.5 hectares Average lot size of data centre take-up since 2024
150
100
50
17% Data centre share of national land take-up in 2025 (27% in Sydney and Melbourne)
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industrial land values and development feasibility.
2018 2019 2020 2021
2022 2023 2024 2025 2026
Sydney Melbourne
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