CBRE Research recently released their report on Australia's Data Centres. We outline the key points for you.
➡ The demand for data centers is growing rapidly, primarily driven by the increase in data creation and storage, the expanding use of cloud computing services, and technological advancements (such as AI).
➡ One of the main factors influencing site selection for data centres is the need for a substantial and dependable power supply.
➡ The Australian Government has played a role in promoting the main factors driving the growth of data centers, while also being a significant user of data centers.
➡ A number of global data center operators are present in Australia and are increasing their capacity, largely due to the influence of hyperscalers. It is projected that Australia's existing capacity will double over the next ten years.
➡ Australia currently has nearly 1.5GW of operational capacity, mainly concentrated in Sydney. However, the future projections suggest that Melbourne will experience a substantial increase in its capacity share over the next ten years.
➡ Data center operators in Australia will keep expanding, but the main obstacle to growth is the insufficient power supply.
➡ The average land area taken up by data centers has been increasing in recent years, and this pattern is projected to persist with the acquisition of more land for AI data centers.
➡ Anticipated are additional leases and/or strategic collaborations as a way for hyperscale companies to secure a presence in the Australian market. The acquisition of AirTrunk in Australia stands out as the biggest data center deal worldwide.
Looking to invest in these markets? Reach out to the CapStack.
A CapStack commercial mortgage advisor can be instrumental in helping you navigate investments into these sectors. By leveraging our deep market knowledge the team at CapStack can source optimal financing options tailored to specific sectors like the office, industrial, and living markets.
Whether it's securing and structuring optimised terms, or providing strategic insights into market trends, a CapStack advisor can help ensure that investors are well-positioned to capitalise on opportunities in Australia’s dynamic commercial property landscape.
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How can CapStack help?
An experienced business finance broker such as those at CapStack can help companies in the manufacturing, wholesale trade, and distribution sectors achieve their goals in 2024:
1. Securing Growth Capital: A business finance broker can help companies secure the necessary capital to invest in technology, equipment, and other resources needed to increase production and meet growing demand. This includes facilitating access to loans, lines of credit, and other financing options tailored to the specific needs of the business.
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3. Navigating Cost Challenges: With rising costs due to energy prices, inflation, and interest rates, a finance broker can help businesses find cost-effective financing solutions. This includes refinancing existing debt at lower interest rates or securing funding with favourable terms that mitigate the impact of these cost pressures.
4. Facilitating Technology and AI Investments: To enhance productivity and competitiveness, businesses need to invest in advanced technologies such as AI and machine learning. A finance broker can identify and arrange funding options that support these strategic investments, ensuring that businesses can implement the latest innovations to improve efficiency and supply chain management.
5. Supporting Sustainability Initiatives: Many businesses are advancing their sustainability efforts, such as adopting renewable energy. A finance broker can provide access to green financing options, including loans and grants specifically designed for sustainability projects. This can help companies reduce their environmental impact while potentially lowering operational costs in the long term.
6. Financing Commercial Property Purchases: For businesses looking to expand their operations or establish new facilities, a finance broker can assist in securing commercial property loans. These brokers can navigate the complex landscape of commercial real estate financing, helping businesses acquire the necessary properties to support their growth and operational needs.
By leveraging the expertise and resources of a business finance broker, companies in the manufacturing, wholesale trade, and distribution sectors can effectively address financial challenges, capitalise on growth opportunities, and achieve their strategic goals in 2024 and beyond.
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When it comes to securing the right financing for your business or commercial property acquisitions and projects in Australia, CapStack is the partner you can trust. With unparalleled expertise, a vast network of lenders, personalised service, and data-backed insights, we are committed to your success. Get in touch with CapStack today and unlock the full potential of your commercial ventures with our expert property finance services.
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