The US data centre boom is now facing a backlash. Australia stands to benefit.
HMC Capital is “pivoting really fast” out of the US as data centre projects face growing community opposition. CDC’s CEO says Australia is becoming “the next best option”.
Australian data centres are riding vast waves of demand as the US development environment becomes more restrictive, according to local companies who are also tempering expectations about the total capacity of projects that will actually be built.
HMC Capital managing director David Di Pilla, fresh from announcing the USD750 million sale of subsidiary DigiCo’s Chicago data centre, is “pivoting really fast out of the US back to Australia”, with the capital to be reinvested in its flagship Sydney facility.
Even as “momentum from AI and the underlying demand is just getting stronger and stronger and stronger”, Di Pilla told the Macquarie Australia conference that 14 US states are considering a moratorium or pause on development amid community backlash around water use and grid stability.
DigiCo’s two data centre proposals for Los Angeles were stymied by local community opposition and it is now “exploring options to realise value for these assets”, with a sale expected.
