Expectations of data centres and AI infrastructure developers

Hi Brent,

Our knee-jerk reaction was no, government involvement rarely helps business with some of the statements mixed at best:

• The Albanese Government expects data centres and AI infrastructure operators to underwrite new renewable power supply, pay their full share of new grid connectivity so costs are not passed to consumers or businesses, and support Australia’s energy transition through demand flexibility mechanisms.
• “Australia is open for business – but the kind of business that puts Australia’s national interest first.”

However, on balance we think it’s a positive but not significantly so.

NEXTDC (ASX: NXT): The government’s push to support AI and data centre development in Australia is a structural tailwind for NEXTDC, reinforcing long-term demand for its infrastructure. While the requirement to fund renewable energy and manage power usage should increase costs and capex, the scale of AI-driven demand is likely to outweigh these headwinds, positioning NEXTDC as a key beneficiary of Australia’s growing digital infrastructure build-out – though funding remains a large task for them.

Goodman Group (ASX: GMG): For Goodman, the policy is a more indirect positive, as increased data centre investment drives demand for well-located, power-enabled industrial land and development sites. However, tighter energy and infrastructure requirements may slow project timelines and raise development costs, meaning the benefit is more gradual and second-order compared to pure-play operators like NEXTDC.

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Goodman Group (GMG) v NEXTDC (NXT)

LAST UPDATED 25/03/2026 13:54

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Goodman Group (GMG) v NEXTDC (NXT)

LAST UPDATED 25/03/2026 13:54