Macquarie Technology Group (ASX: MAQ) has exercised a call option to purchase a 3.4ha site in Macquarie Park for $240 million, where it plans to build an engineering and technology campus co-located with a 200-megawatt data centre campus as part of a broader $3 billion expansion.
The company, founded in 1992 by brothers David and Aidan Tudehope, will fund the land acquisition through existing cash reserves and corporate debt.
Completion of the purchase is subject to standard settlement procedures, with construction estimated for completion in late 2029, subject to planning and other approvals.
The Macquarie Park site, located between Talavera Road and the M2 motorway, is designed to support research, technology and learning opportunities in conjunction with Macquarie University.
The campus builds on the group’s recently announced partnership with Macquarie University to provide practical, hands-on opportunities for students and researchers to utilise latest data centre, cyber security, AI, and cloud technologies at the new Macquarie Park campus.
The company says this will create pathways for students and academics to have direct experience in technology and engineering in collaboration with industry.
"Macquarie is planning to provide significant community benefits to the local area as part of the development, including through the proposed creation of a more than one-acre sized park within the campus by converting part of the neglected industrial site, subject to obtaining the requisite approvals," says Macquarie Technology Group.
"The multi-generational park is intended to include recreational and community-use areas, designed to bring together different generations of families and friends. It is also proposed to feature a large community garden for City of Ryde residents."
The proposed new park will also include a new outdoor art gallery designed to showcase the creative talent of the local community, Macquarie University students and faculty and the history of the local community.
Macquarie Technology says it is exploring funding options for the broader data centre and engineering campus construction program including capital recycling and development partnerships.
The proposed campus will feature advanced air-cooling technology with limited water usage, a one-acre community park, community garden and outdoor art gallery.
The land deal comes as the National Reconstruction Fund Corporation (NRFC) has announced a $200 million hybrid note investment in Macquarie Technology to support sovereign cloud infrastructure, AI-enabled cybersecurity and a new sovereign data facility.
The NRFC investment is expected to create 140 highly skilled jobs, adding to the company's existing workforce of about 450 people.
The Macquarie Park site positions the company to capitalise on surging demand for data centre capacity driven by artificial intelligence workloads and cloud computing, with the 200-megawatt campus representing a significant addition to Sydney's data centre market.
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