Sydney, Australia - 29 December 2025 - DigiCo Infrastructure REIT has secured planning approval from New South Wales authorities to expand its flagship SYD1 data center in central Sydney, clearing a key regulatory hurdle as demand for high-density digital infrastructure continues to intensify across Australia’s largest metro market.
The approval, granted under the state’s State Significant Development framework, allows DigiCo to proceed with a staged expansion and optimisation of the SYD1 facility. The project is designed to materially lift available IT load capacity, with the site expected to scale to around 88 megawatts once fully built out, positioning it among the more substantial colocation assets in the Sydney market.
DigiCo said the expansion responds to sustained customer demand for high-power, high-availability capacity in Sydney, where constraints on land, power and planning approvals have tightened supply. The SYD1 campus sits close to major fibre routes and enterprise clusters, making it a strategic location for cloud, enterprise and government workloads that require low-latency access and strong resilience.
Chief executive Michael Juniper described the approval as a critical milestone in the company’s growth strategy. “This planning approval supports our strategy of densifying and optimising existing assets to meet strong customer demand, particularly in Sydney where capacity is scarce,” Juniper said, adding that the company is focused on accelerating delivery while maintaining operational efficiency.
The expansion approval comes alongside a series of recent customer wins for DigiCo across its Australian portfolio, including contracted capacity at SYD1 and other sites. Earlier disclosures show the REIT has been signing multi-megawatt deals with enterprise and digital service providers seeking scalable capacity in established metros rather than greenfield locations.
Industry analysts note that Sydney remains one of the most supply-constrained data center markets in the Asia-Pacific region, with power availability and planning timelines emerging as decisive factors. Against that backdrop, approvals for brownfield expansions such as SYD1 are increasingly valuable, enabling operators to bring incremental capacity online faster than new site developments.
DigiCo has not disclosed a detailed construction timeline or capital expenditure profile for the SYD1 expansion, but indicated that development will be phased in line with customer commitments. The company said it will continue to work closely with regulators and utility providers to manage power, sustainability and community considerations as the project progresses.
The approval strengthens DigiCo’s position in Sydney at a time when hyperscale, AI and enterprise demand is reshaping capacity requirements, underscoring the strategic importance of optimised, high-density facilities in core urban markets.
