AI Boom Drives Kapitol’s National Expansion

Seven years after launching with three people and a vision to do things differently, Kapitol is retiring ‘Group’ from its name as it looks to scale nationally. The rebrand marks Kapitol’s transformation from Victorian startup into one of Australia’s fastest-growing builders, fuelled by surging demand for data centres from AI and cloud services. The company is preparing to expand into Sydney and Darwin markets, and Kapitol director Andrew Deveson said simplifying its name aligned with the company’s future-focused direction. “We started Kapitol in 2018 [and] today, we have over 300 staff, a pipeline exceeding $4 billion, and some of the most complex projects in the country under way,” Deveson told The Urban Developer . “Transitioning to a global website domain and simplified brand identity positions us for what’s next. “We’re laying the foundation for further expansion into new markets, ensuring we remain clear, consistent and future-ready as a business.” Kapitol, which describes itself as Australia’s largest data centre builder, has delivered more than $1.2 billion of facilities and has 185MW under construction. It has a long-standing partnership with NextDC, helping the data centre operator build the 60MW M2 facility expansion at Tullamarine , implementing prefabricated modular designs with precast core modules and super T-bridge beam superstructures in data halls. National data centre capacity is forecast to more than double by 2030, according to CBRE research. Without new supply, Australia faces a shortfall of 1.7GW by 2028 in data centre capacity, which would restrict the rollout of AI and cloud services in the Asia-Pacific digital economy. Deveson said these pressures are reshaping how facilities are designed and delivered. “Data centres have become critical infrastructure and delivery methods must evolve to keep pace,” he said. “Each state faces different challenges, such as land and power in Sydney, water in Melbourne and workforce capability in the Northern Territory.” ▲ Deveson said Australia’s data centre capacity is forecast to more than double by 2030. According to the Property Council of Australia, repurposing commercial assets into data centres could provide a sustainable solution while addressing Australia’s 14.6 per cent office vacancy rate. “Capital cities are the logical first place for retrofitting commercial assets into data centres,” Deveson said. “In Sydney, vacant commercial buildings can be converted into smaller-scale co-location facilities, meeting demand faster while extending the life of existing assets. “In Melbourne, upgrading CBD buildings with recycled cooling systems reduces additional water demand compared to greenfield sites. Retrofitting is a practical way to deliver new capacity quickly while cutting waste, cost and time.” Darwin demand is growing rapidly due to subsea cable links to Asia, positioning the city as a strategic digital gateway. However, the Northern Territory Chamber of Commerce reports a 5000 shortfall of skilled workers. “Demand in Darwin is increasing quickly but there is a shortage of specialist contractors. Builders will need to relocate experienced teams into the Territory, while investing in training local contractors, so capability is built up quickly and sustainably,” Deveson said. Kapitol director Dave Caputo said the adoption of the new name reflected the company’s confidence in its long-term vision. ▲ Kapitol Group co-founders David Caputo and Andrew Deveson. “The construction industry is facing real pressures, from skills shortages and rising costs to the wave of insolvencies across the sector,” Caputo told The Urban Developer . “What matters is having the capability, systems and people to remain strong through those conditions and be ready to take advantage of growth when it returns. “Simplifying our name and moving to kapitol.com is more than a change in appearance. It signals that Kapitol is built for the long term. “By investing in our people and technology, we’ve built the discipline to perform now and the capability to continue growing.” The company has committed $2 million to staff training and $1 million to its Trade Partner Engagement Framework over the past year. Kapitol’s expansion extends beyond data centres into infrastructure and defence. The company won its first major infrastructure contract in August for the North East Link Motorway Control Centre at Balwyn North, Melbourne, and is delivering stage two of Hanwha Defence Australia’s $170-million Armoured Vehicle Centre of Excellence . Caputo indicated defence work could represent close to 20 per cent of the company’s workbook within five years.

Infrastructure
Leon Della Bosca
Fri 03 Oct 25

AI Boom Drives Kapitol’s National Expansion

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InfrastructureLeon Della BoscaFri 03 Oct 25

AI Boom Drives Kapitol’s National Expansion

Get the full story.

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