Real estate group Goodman has more than 3GW of potential data center capacity in its pipeline and says this is an opportunity worth tens of billions of dollars.
In a Q1 2024 operational update published today, the company detailed its ambitions in the data center space, outlining a significant pipeline capacity.
In the update, the company said it had 3.7GW of secured or potential power within its existing portfolio; data centers under construction currently represent approximately 25 percent of Goodman's development work in progress.
“Approximately 1.9 GW of this power is secured, with a further 1.8 GW in advanced stages of procurement,” the company said. “In addition, there are several sites owned by the Group and Partnerships currently under review for potential data center use.”
Goodman said the pipeline is geographically spread across 12 cities and the development of its existing power bank is expected to occur over the next seven to 10 years.
The group is working with a variety of customers – including hyperscalers – on a number of models including "developing powered shell data centers and providing turn-key data centers."
CEO Gregory Goodman said: “While global markets remain uncertain, the structural trends of the digital economy remain intact. As the cost of doing business in an inflationary environment increases, our customers continue to focus on maximizing productivity from their space.”
He continued: “The continued and significant growth in data requirements, driven primarily by AI and cloud computing, is creating strong demand for our powered sites. Goodman has created a significant opportunity over the past decade to participate in this growing and essential segment of the market. We are actively engaged with our data center customers to facilitate their requirements and believe this will provide positive opportunities for our customers and security holders alike.”
Around 30 percent of the company’s development work in progress was related to data center projects in the company’s full-year 2023 results published in August.
“Significant growth in data storage and AI in particular is driving data center demand,” the report said. “The group and partnerships have a significant prospective pipeline of data center sites with secured and potential power allocation of >3GW.”
Goodman builds business parks, industrial and warehouse/logistics space, and data centers.
Goodman has previously delivered 600MW of powered sites and powered shell projects over the last 15 years, according to the company; its data center portfolio currently spans Tokyo, Sydney, and Hong Kong.
In September 2022, Goodman opened the Tsuen Wan West precinct in Hong Kong; the new data center development comprises four buildings totaling 1.6 million sq ft (148,640 sqm) of space and will reportedly offer up to 400MW.
Earlier this year, the company announced plans for a 100MW powered shell facility in Frankfurt, Germany.
Goodman is one of a number of logistics & warehouse industrial real estate firms looking to move into or expand their existing presence in the data center space. The likes of Prologis, Segro, GLP, ESR, P3, and others are also looking to develop facilities in the US, Europe, and Asia Pacific.
Goodman was previously listed by French data center builder and Cap Ingelec subsidiary Cap DC as a "key partner." DCD understands the two companies have partnered in markets such as Milan and Madrid.
More in Construction & Site Selection
More in Colocation & Wholesale
Episode Why Sweden, why now?