Macquarie Telecom to upgrade data centre campus to 43MW for $80m

08 August 2018 | Natalie Bannerman

Cover

Macquarie Telecom is developing its Macquarie Park Intellicentre and expanding it into a 43MW campus for approximately $80 million.

The project will be undertaken in phases. Phase one will focus on Macquarie Park Intellicentre 3 (IC3) East and will allow the company to expand its data centre capacity from a total load of 10MW to 26MW. The following phases will add an additional 17MW when building out Macquarie IC3 West.

“The investment will leverage not only the physical investment already on the site, but Macquarie’s 18-year track record of data centre experience, industry-leading customer service, carrier neutrality and commercial flexibility,” said David Tudehope, CEO of Macquarie Telecom Group.

The campus has been designed to meet the growing needs of hyperscalers and clouds, enterprise and government customers. The first data hall in the new campus is scheduled for completion in late 2019. Upon launch the hall will achieve a mechanical, electrical and plant (MEP) of 2.4MW, with further MEP investment to be funded by the debt facility.

The company says the new expansion will cost roughly $75-80 million in capital expenditure, the bulk of which will be incurred in 2019.  Although a portion of this cost will be offset by a fee to be paid by Keppel DC REIT to the value of £26-36 million for the development of the core and building of IC3 East.

"The new data centre will be a Tier III+ facility with an Australian leading PUE of 1.28,” added David Hirst, Macquarie Group Executive. “It will be certified by Uptime Institute, built to meet Australian Government physical security standards, ISO 27001:2013, and support the delivery of credit card payment environments."

Macquarie will enter into a 20-year lease with Keppel including options to renew. The data centre development will be financed through structured debt financing which will be finalised in Q1 of 2019. The company also plans on extending its ASD-Certified government cloud into this facility once completed.