The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
AFFORDABLE HOUSING DEVELOPMENT SUMMIT THURSDAY, AUGUST 28, 2025
AFFORDABLE HOUSING SUMMIT THURSDAY, AUGUST 28, 2025
EVENT DETAILSDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
TechnologyLeon Della BoscaThu 09 Jan 25

NextDC Plots $200m Data Centre at Port Melbourne

NextDC Melbourne Data Centre

NextDC has plans for a $200-million data centre at Port Melbourne, signalling the latest development in what industry research identifies as an emerging boom sector in Australia.

The proposal is NextDC’s fourth major facility slated for  Melbourne as demand for data processing capabilities continues to surge nationally.

The M4 facility is proposed for a 2.64ha site at 127 Todd Road, about 10km by road west of the CBD. The project is in the early planning stages.

It follows NextDC’s significant expansion across Melbourne, including the recently completed M3 facility in West Footscray.

That project, completed in September of 2022, spans 100,000sq m and has a 150mW capacity across its technology campus. The first stage delivered 15,986sq m of gross floor area across four levels, with 27mW capacity and six data halls.

“For property developers, NextDC’s Melbourne data centres offer strategic opportunities across multiple locations,” the filed document said.

The company’s Melbourne portfolio includes M1 at Port Melbourne with 6000sq m of technical space, M2 at Tullamarine offering 25,000sq m, and the M3 with 41,000 square metres.

Kapitol Group, the construction partner for NextDC’s 60mW M2 data centre facility expansion, has implemented several value-management initiatives that could provide a framework for future developments.

These include prefabricated modular designs with precast core modules and super T-bridge beam superstructures in the data halls, eliminating the need for columns and creating additional net lettable area.

NextDC's M2 Tullamrine facility
▲ NextDC's M2 Stage 4 facility includes six data halls across five levels, featuring a 10-megawatt data hall, one of Victoria’s largest.

Recent research from M3 Property indicates rapidly increasing demand for data centre facilities across Australian property markets.

The report identifies 135 operational co-location data centres nationally, with about 183,000sq m of space under construction.

Melbourne is to receive nearly three-quarters of this new supply.

M3 Property national director, specialised assets, James Ruben said data centres had evolved beyond their traditional role as ancillary property uses.

“This is changing with the rapidly growing demand for data centres in Australia,” he said. “The growth of e-commerce, data security requirements and the need for companies to provide reliable IT services to a remote workforce is leading to the need for developers to build bigger and more secure purpose-built data centres.”

For all the hype, Ruben acknowledges the sector faces significant challenges.

“While data centre facilities are seeing increasing demand from both users and investors in major property markets, the sector is also facing several key challenges,” Ruben said.

“These include finding suitable land for new developments, access to adequate and steady power supply, and increasing construction costs.”

Inside NextDC's M1 facility
▲ Inside NextDC’s M1 facility. 

The expansion of data centre facilities presents opportunities for property developers, including increased land values in specific regions and improvements to local infrastructure.

The construction of data centres can drive upgrades to roads, utilities, and telecommunications, enhancing the appeal of surrounding areas for residential, commercial and industrial development.

Major international investment is underscoring the sector’s growth, with AWS announcing $13 billion in Australian projects and Microsoft committing $5 billion to local developments. CDC has also revealed plans for a $1.4-billion site in Western Sydney.

The M3 Property report also identifies opportunities beyond new builds, including the potential to repurpose older warehouses into data centres.

With metropolitan land becoming scarce, the report suggests regional areas offer viable alternatives for development.

The report suggests developers can also consider building powered cold-shell facilities targeted at data centre operators.

M3 Property’s market analysis shows data centre vacancies across Australia are now in single digits, with the sector evolving from $300-million assets to billion-dollar projects requiring substantial land holdings and infrastructure investment.

Data CentresAustraliaMelbourneVictoriaSydneySector
AUTHOR
Leon Della Bosca
More articles by this author
linkedin icon
ADVERTISEMENT
TOP STORIES
Traders in purple Northsea Wollongong EDM
Exclusive

Affordable Housing Bonus Drives Mixed-Tenure Momentum

Clare Burnett
6 Min
Exclusive

Industry Stoush Looms Over Construction Code Pause

Patrick Lau
4 Min
Exclusive

New Wave of Capital Washes Over Evolving Surf Park Sector

Phil Bartsch
11 Min
North Sydney TUD Plus HERO
Exclusive

NSW Housing Fix Tips North Sydney into New Era

Vanessa Croll
7 Min
 GemLife site Currumbin Waters EDM
Exclusive

Pop-Out Apartments Power GemLife’s $450m Vertical Experiment

Clare Burnett
6 Min
View All >
Traders in purple Northsea Wollongong EDM
Exclusive

Affordable Housing Bonus Drives Mixed-Tenure Momentum

Clare Burnett
Broadbeach 38-40 Australia Avenue DA Approval render hero
Development

Tripling Down on Gold Coast Tower Plans Pays Dividends

Phil Bartsch
Billbergia Legacy HDA
Residential

Two 60-Storey MacPark Towers Fast-Tracked

Clare Burnett
Nearly 8900 homes have been expedited including an 870 unit project from property heavyweight Billbergia…
LATEST
Traders in purple Northsea Wollongong EDM
Exclusive

Affordable Housing Bonus Drives Mixed-Tenure Momentum

Clare Burnett
6 Min
Broadbeach 38-40 Australia Avenue DA Approval render hero
Development

Tripling Down on Gold Coast Tower Plans Pays Dividends

Phil Bartsch
2 Min
Billbergia Legacy HDA
Residential

Two 60-Storey MacPark Towers Fast-Tracked

Clare Burnett
3 Min
Kincrest The Osment Prahran HERO
Development

Kincrest Breaks Ground on its $100m Prahran Luxury Project

Leon Della Bosca
4 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/nextdc-melbourne-data-centre-expansion