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News release

Sydney

Data centre providers head to greener pastures

Metronode Pty Ltd recently purchased an 16,820 sqm site in Silverwater which will be developed into a major data centre


SYDNEY, 7 JUNE 2012 – Demand for data centre sites in greenfield locations outside the CBD is increasing with a number of Government departments and corporates looking to outsource their data storage according to Jones Lang LaSalle.

Last week, Metronode Pty Ltd, a wholly owned subsidiary of Leighton Contractors, purchased a 16,820 sqm site in Silverwater for $11,114,800. The site will be developed into a data centre with 9 megawatts of IT load over the next 2 years.

According to selling agents Andrew Maher and Casey Greenberg of Jones Lang LaSalle, the demand for sites in the outer west will continue to increase as firms look to better utilise the space in CBD offices.

Mr Maher said, "The Metronode deal reflects the growing demand from data centre providers for greenfield locations in metropolitan areas."

"A number of corporates and government entities that occupy office space in the CBD are looking to outsource their data storage to providers with more specialised facilities which have greater access to power and the ability to meet tier 3 requirements in terms of building security and redundancy."

"Outsourcing this function also allows firms to maximise their CBD office space. With companies under increasing pressure to reduce costs and maximise efficiency they are looking for ways to better utilise their prime office space and outsourcing data storage is becoming a popular way to do it." Mr Maher added.

A number of corporate and Government entities have developed data centres in Sydney's west over the past 12 months.

Last year Woolworths open the first of its 2 data centres in Sydney’s Eastern Creek and Westpac relocated its main data centre operations to Greystanes in Sydney's west.

Government entities are also outsourcing data storage with the NSW Government entering into an agreement with Metronode to build and operate two tier 3 data centres for the NSW Government as part of the Governments data centre reform strategy.

According to Mr Greenberg the data storage industry will continue to grow in the coming years.

"Firms are really starting to see the advantages of shifting their data storage function to external providers based in the outer suburbs and, as a result, we will see a greater number of data centres opening in greater western Sydney," Mr Greenberg concluded.