Goodman builds momentum with $19.7 billion data centre pipeline

Goodman sets 9% FY27 operating EPS target

Goodman Group (ASX:GMG) is leaning into the scarcity of power, land and approved development sites, targeting 9% growth in FY27 operating earnings per security and a distribution of 30.0 cents per security. The targets are subject to no material deterioration in market conditions or other unforeseen events.

The group’s development work in progress stood at $19.7 billion across 51 projects at 30 September 2026, with an estimated annualised production rate of about $7.5 billion. Data centres made up 79% of WIP, while 68% was either pre-sold, being developed for third parties or held within Goodman’s Partnerships. Overall pre-commitment was 31%, reflecting the practice of starting some data centre projects before customer contracts are finalised.

Power bank expands as data centre projects advance

Goodman’s total power bank increased to 6.6 GW, including 3.6 GW of secured power, 0.5 GW in work in progress and 0.7 GW delivered. The data centre projects in WIP have secured power connections and planning approvals, with staged delivery scheduled between early 2027 and 2030.

The pipeline includes 497 MW of primary power and a further 1,332 MW of potential expansion capacity across the listed projects. Goodman said the sites are in supply-constrained metropolitan markets and are being developed with flexibility around leasing structures, joint ventures and capital partnerships. Its first 50 MW building at the Tokyo campus is already supported by the Tokyo 50 MW lease, while other sites in Hong Kong, Los Angeles, Amsterdam, Paris, Frankfurt, Sydney and Madrid remain at different stages of customer negotiations.

“Goodman TYO05, Tsukuba, Japan”

Several projects are in advanced discussions with hyperscale customers for whole-building commitments, but the filing makes clear that negotiations remain active across much of the portfolio. Goodman said it is securing contractors and long-lead equipment while progressing customer discussions alongside construction, an approach intended to improve certainty around delivery timing and costs.

Industrial portfolio reaches $90 billion

The logistics portfolio is also producing steady operating momentum. Annual like-for-like net property income growth was 4.0%, rising to 6.2% excluding Greater China, while occupancy stood at 95.5% and the average expected rent reversion to market remained positive at about 10%. Goodman leased 4.1 million square metres across the platform over the past year, representing $602 million of annual rental income, and said valuations were positive in the quarter.

“TOTAL PORTFOLIO”

Total portfolio value reached $90.0 billion, including $76.1 billion of Partnership assets under management. Partnership AUM increased by $1.0 billion during the quarter, mainly through development capital expenditure and revaluations. Goodman also said it raised US$455 million for its Hong Kong Data Centre Partnership, adding two new investors. The European data centre push is being supported by the European data centre venture, launched with CPP Investments in 2025.

Customer demand meets higher delivery risk

The investment case rests on a familiar but capital-intensive equation: hyperscale and enterprise demand is reported to exceed available capacity, while new supply faces higher construction costs, constrained funding, limited large sites and more complex planning requirements. Goodman’s current WIP carries an 8.3% yield on cost, but the lower 31% pre-commitment level for the overall program leaves more exposure to leasing execution than in completed projects, particularly where customer negotiations are still underway.

CEO Greg Goodman said the group’s scale, capital access, customer relationships and development capability provide an advantage as barriers to entry rise. The next test is less abstract: whether secured power and projects under construction convert into ready-for-service capacity, signed customer commitments and the operating earnings growth embedded in the FY27 target.