Why fund managers see Macquarie Technology's data centres as the real growth story

A disappointing Telecom division briefly overshadowed Macquarie Technology Group's data centre expansion, which fund managers say has the potential to double group EBITDA.

30 Jun 2026 · 5 min read

Cloud, data centre and cybersecurity provider Macquarie Technology Group is positioning its Data Centre division as the key driver of earnings growth for the coming decade, even after a disappointing FY26 Telecom segment guidance briefly overshadowed a strong FY25 group result. Blackwattle Investment Partners' August 2025 Monthly Report detailed the company's newest data centre project, IC3-SuperWest under construction at its Ryde campus in Sydney, which will materially increase group IT load capacity from 21.5MW to 68.5MW and has the potential to double group EBITDA.

A telecom disappointment masks a much bigger data centre story

Blackwattle's report noted construction on IC3-SuperWest was progressing on time and on budget, with contracting for the first 6MW of capacity expected within months, even as shares fell 12.4% in August after FY26 Telecom segment guidance fell short of expectations. Pendal Group's own August 2025 Monthly Report confirmed the mixed picture, noting the FY25 result was in line with consensus but FY26 guidance of marginal growth disappointed the market, with management pointing to increased competition pressuring the company's oldest and smallest division, even as longer-term structural tailwinds in cloud services and data centres remained intact.

Macquarie Technology capitalised on its unique sweet spot at the intersection of cloud infrastructure and top-tier government cybersecurity, securing a landmark $200 million hybrid financing package from the Australian Government's National Reconstruction Fund to fast-track domestic digital resilience.

— DS Capital, Annual Report, June 2026

DS Capital's March 2026 Quarterly Report named Macquarie Technology alongside NEXTDC as its preferred exposures to the AI infrastructure theme, even as AI disruption concerns more broadly weighed on markets during the period. Perennial Partners' May 2026 Monthly Report described the stock as one of its smaller AI exposures via data centre operators, expected to deliver rapid growth as it rolls out capacity to meet computing demand from both hyperscalers and corporates.

What managers are watching next

DS Capital's June 2026 Annual Report detailed the landmark $200 million hybrid financing package secured from the Australian Government's National Reconstruction Fund to fast-track domestic digital resilience, alongside the identification of a new Sydney site that will allow the company to materially grow its footprint further. With the IC3-SuperWest expansion progressing on schedule and the government cybersecurity and data centre franchise continuing to attract capital, managers are watching how quickly the new capacity converts into the earnings growth the Data Centre division is expected to deliver.