17 Feb, 2022

Data centre giant to move into CBD

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The City of Adelaide’s sale of 211 Pirie Street has been finalised with Australia’s leading data centre provider NEXTDC to construct South Australia’s first defence standard data centre.

The site was identified through Council’s Strategic Property Review and the sale – endorsed unanimously by Council – will generate significant funds to be invested through Council’s Future Fund to deliver future growth.

Founded in 2010, NEXTDC is Australia’s market leading data centre solutions provider, with a globally recognised infrastructure platform that spans Australia’s major capital cities and growth regions. NEXTDC is one of Australia’s largest companies, entering the top ASX 40 and ASX 100 indices, and has forecast data centre services revenue to reach AU$285-AU$295 million in 2022.

It is expected that the development of the proposed class-leading technology hub will generate 150 jobs for South Australians.

Last year Council launched an Expression of Interest (EOI) campaign for the sale and redevelopment of the 211 Pirie Street land. EOI submissions were assessed by an evaluation panel which unanimously agreed that NEXTDC demonstrated clear delivery certainty and the strongest commercial offer.

Lord Mayor Sandy Verschoor welcomed NEXTDC’s arrival in Adelaide.

“As a city that is focused on building greater digital capabilities and attracting a broad range of businesses and investment, NEXTDC is precisely the type of business we want to see based here,” said the Lord Mayor.

“The NEXTDC plan for the site is truly impressive. Beyond the data centre capabilities, we will see a facility which includes an Entrepreneur and Innovation Centre where universities and businesses can collaborate.

“Not only will the sale of 211 Pirie Street see a company with a strong global reputation further cement Adelaide’s reputation as an affordable and innovative place to do business, but the investment will be responsibly used for the growth of the city.

“Today’s announcement is also a great example of two levels of government working in partnership and I want to thank and acknowledge the State Government for its commitment to attracting new investment to our city.

“We are also working closely with Volleyball SA with regard to their transition from the existing site, with Council identifying a new location at Bonython Park/Tulya Wardli.”

Premier Steven Marshall said the investment will go beyond the creation of the data centre to include the opportunity for collaboration with our state’s universities, ensuring a pipeline of skilled workers for the future.

“It is also fantastic that this central city location will enable the company to continue to service their customers, including Amazon Web Services, Google Cloud and Microsoft Azure who have all established in Adelaide.

“I’m delighted to welcome NEXTDC’s cutting-edge technology to Adelaide and look forward to their support of South Australia’s circular economy.”

NEXTDC CEO Craig Scroggie said it was an honour to have been selected by the City of Adelaide to develop a strategic site into a new world class technology centre of excellence.

“We are excited to be a part of the growing ecosystem of leading technology companies that are investing in the South Australian economy,” said Mr Scroggie.

“Our partnership with the South Australian Government was also instrumental in developing our
long-term strategy to support the growth of the state.

“This digital infrastructure development represents an important investment for South Australia, that will further support and accelerate the growth of the SA Government’s Digital transformation strategy.”

Site development is expected to commence in the back half of 2022.

For more information

Matthew Halliwell