Data Centre Expansion Risks Loom as Macquarie Technology Holds $450m Undrawn Debt
Macquarie Technology Group reported modest revenue and profit growth for FY25, underpinned by a new $450 million undrawn debt facility aimed at expanding its data centre portfolio. The company’s strategic investments include the on-time construction of IC3 SuperWest and a $240 million option to acquire land for a new Sydney campus.
- Revenue up 1.7% to $369.6 million
- Net profit after tax increased 5.6% to $34.9 million
- EBITDA rose 4.1% to $113.6 million with margin improvement
- Secured undrawn $450 million debt facility for data centre expansion
- Entered option agreement for $240 million Sydney data centre land acquisition
Financial Performance Highlights
Macquarie Technology Group Limited has released its preliminary final report for the year ended 30 June 2025, revealing steady growth across key financial metrics. Revenue from ordinary activities rose by 1.7% to $369.6 million, while net profit after tax attributable to members increased 5.6% to $34.9 million. EBITDA also improved by 4.1% to $113.6 million, with the margin expanding to 30.7% from 30.0% the previous year.
The company’s cash flow conversion remained robust at 115%, generating $109.9 million in net cash flows from operating activities. Despite these positive results, no dividends were declared, reflecting the Group’s ongoing capital-intensive growth phase.
Strategic Capital Initiatives
Central to Macquarie Technology’s growth strategy is its data centre portfolio expansion. The Group successfully completed financing for a new $450 million undrawn debt facility during FY25, earmarked to support the construction of IC3 SuperWest and further data centre developments.
Construction of IC3 SuperWest remains on schedule and within budget, with core and shell completion expected by September 2026. Fitout of the initial 6MW mechanical and electrical plant has commenced, positioning the facility to meet growing demand.
In a significant strategic move, the Group entered into a put and call option agreement in July 2025 to acquire a substantial parcel of land in Sydney for $240 million. This site is intended for a new data centre campus, designed to deliver over 150 MW of IT load in stages, targeting hyperscale, AI, cloud, and government clients. The acquisition is subject to development approvals and subdivision, with funding planned through existing cash reserves and the corporate debt facility.
Operational and ESG Focus
Macquarie Technology continues to emphasize operational efficiency and sustainability. Its latest data centre, Intellicentre 3, boasts a design Power Usage Effectiveness (PUE) of 1.28, significantly outperforming the Australian average of 2.5. The Group’s Canberra data centre campus operates on 100% renewable electricity, and ongoing investments in energy-efficient infrastructure underpin its commitment to environmental responsibility.
On the social front, the Group maintains a strong focus on workplace diversity, inclusion, and community engagement, with gender diversity at 27% female employees and 40% female board representation. Governance practices have been enhanced in response to investor feedback, including improved disclosures on executive remuneration and risk management.
Executive Remuneration and Governance
The remuneration report highlights a balanced approach linking executive pay to financial performance and customer satisfaction metrics. Short-term incentives (STI) and long-term incentives (LTI) are tied to EBITDA targets, net promoter scores, and total shareholder return. While some overachievement targets were not met, the Chief Financial Officer earned a bonus for successfully completing the $450 million debt raising.
Macquarie Technology’s governance framework remains robust, with active board oversight of strategy, risk, and ESG policies. The Board continues to prioritize a diverse skill set and independent directors to guide the Group’s growth trajectory.
Bottom Line?
With a strong balance sheet and strategic land acquisition underway, Macquarie Technology is poised for accelerated growth in Australia’s competitive data centre market.
Questions in the middle?
- Will the Group draw on the $450 million debt facility soon, and what impact will this have on leverage?
- How will regulatory approvals for the Sydney data centre land acquisition progress, and what are the associated risks?
- What are the prospects for dividend resumption given the capital-intensive expansion phase?