NEXTDC (NXT) and Goodman Group (GMG) provide the ASX’s most direct exposure to the data-centre build-out. NXT is the purer play, operating 15 Australian facilities with a 565MW forward order book and investing around ~$2bn in FY26 to meet hyperscaler demand, while GMG has rapidly evolved from a traditional industrial property group into a global data-centre developer, with data centres accounting for around 73% of its $18bn development pipeline and a 6.4GW power bank across 13 major cities. Any meaningful slowdown in hyperscaler spending could therefore hit NXT through weaker utilisation and returns on its aggressive expansion program, while for GMG the more likely impact would be delayed projects and a slower ramp-up in development profits rather than a derailment of its longer-term growth story.
Charter Hall and Stockland are less exposed than NXT and GMG but are increasingly participating in data-centre development. Charter Hall has secured significant power capacity, while Stockland has partnered with EdgeConneX on Australian projects.
- We hold GMG in our Growth Portfolio and remain positive on the company, particularly with the stock already trading on the cheaper side of history at a time when the medium-term growth outlook is arguably better. However, the pivot into DCs does increase execution risk, and because of that, we do not intend to increase our current weighting.
