- Last year saw well over US$1B in data centre transactions
- Demand is expected to continue, particularly as investors diversify
- The S3 DC is located in Atarmon
The fast-growing data centre sector has seen yet another completion amidst heightened demand.
The Property Tribune reported supply pipeline for the sector is ‘considerable’, with a CBRE report finding US$1.4 billion worth of data centres were traded across the Asia Pacific region in 2022.
Data centres are also gaining attention from the perspective of diversifying portfolios. The Property Tribune previously covered a report where Knight Frank Chief Economist Ben Burston said:
“Amidst higher inflation and a subdued economic outlook, property investors are seeking diversification into sectors aligned with behavioural and demographic shifts that will provide secure income in the near term and maximise longer term growth potential.”
“Data centres clearly offer these characteristics, as the sector has witnessed a remarkable acceleration in recent years, driven by the exponential growth of internet usage across commerce, social media, entertainment, and cloud adoption.”
In terms of Australian completions and transactions, Melbourne saw data centres open in the latter half of 2022, with the design process, rather aptly, being data-driven, and an Ultimo data centre was acquired earlier in 2022.
NEXTDC S3 reaches completion
In March 2021, The Property Tribune reported on the appointment of Multiplex to deliver the lower North Shore data centre.
The project has now reached completion on the second and final stage of NEXTDC‘s S3 Sydney Data Centre at 2 Broadcast Way, Atarmon.
S3 is the third data centre delivered by Multiplex for NEXTDC, and caters to the rising demand for data centres which are both Tier IV certified and government certified as strategic to manage and secure Australia’s critical digital infrastructure.
Designed by Greenbox architects, NEXTDC’s S3 Sydney features more than 26,000 square metres (sqm) of data halls and ancillary infrastructure across nine levels, delivering more than 20,000 sqm of critical IT space. S3 Sydney interconnects to the existing S1 Sydney and S2 Sydney data centres in addition to the broader national digital infrastructure network.
Multiplex commenced the Stage Two works in January 2022 and has reached completion two months ahead of schedule.
“We are delighted to continue our partnership with NEXTDC and complete this highly technical project. This strategic collaboration delivered on our shared vision to provide an innovative, world-class space for the rapidly evolving tech sector,” said Regional Managing Director of Multiplex NSW, David Ghannoum.
The Stage Two works spanned a total of 18 months, with an average of 350 construction workers onsite daily throughout the project. Generating significant employment, the NEXTDC S3 Sydney Data Centre Project employed more than 3,000 workers over the project’s duration.
The second and final stage of the project delivered an additional 12,000 sqm of Data Hall space as well as expansion of the front of house and client spaces.
NEXTDC Chief Operating Officer, Simon Cooper said, the completion of Stage Two allows NEXTDC to extend existing services and offer new innovations such as the customer experience auditorium, Mission Critical Spaces in addition to increased IT capacity and enhanced inter-connectivity to the nationwide NEXTDC ecosystem of ICT partners, global cloud platforms and telecommunication providers.
According to Multiplex, the delivery of Stage Two was a significant achievement amidst supply chain delays and construction challenges.
In addition to procurement challenges caused by ongoing COVID-19 restrictions, Stage Two was constructed in a live environment, with Stage One of the building occupied when works commenced.
An additional challenge saw four 21.2 tonne on-site generators needing to be lifted into the building prior to the completion of the Stage Two façade works. By creating shared zones for construction access, restricting materials handling and re-sequencing construction works, Multiplex overcame these challenges safely and efficiently.
The first stage of NEXTDC S3 Sydney achieved the prestigious Tier IV Certification from the Uptime Institute. The globally-recognised standard certifies a 100% uptime guarantee for reliability, security, and performance – ensuring data protection and business continuity. Tier IV certification also signals exemplary levels of resilience, providing the maximum amount of redundancy for the facility’s power and cooling.
