FINWIRES · TerminalLIVE
FINWIRES

Macquarie Technology Group May Face Community Pushback on New South Wales Data Center Development, Jefferies Says

By

Macquarie Technology Group (ASX:MAQ) may face community pushback as it exercises option to buy a major data center development site in Sydney, New South Wales, for AU$240 million, Jefferies said in a Wednesday note.

The company plans to build an engineering and technology campus co-located within an around 200 megawatts data center campus in Macquarie Park, designed to incorporate advanced air cooling technology with limited water usage.

The initial construction is estimated to be completed in late 2029, subject to planning and other approvals.

Although local power and water supplies are sufficient, the company should still secure local council development application approvals before building can start.

The site is located far away from residents, adjacent to the M2 freeway, but the company plans to include an art gallery and a one-acre park within the site to address potential community pushback, Jefferies said.

The company is expected to need an external capital partner to help fund construction of the facility, which will cost an estimated AU$3.5 billion to AU$3.6 billion.

Jefferies maintained a hold rating and a price target of AU$64.60 on Macquarie Technology Group.

Related Articles

Asia

Aussie Broadband's Ability to Deliver Its Fiscal Year 2028 Ambitions Faces Limited Impact from Satellite Disruption Threat, Jarden Says

Aussie Broadband's (ASX:ABB) ability to deliver its fiscal year 2028 ambitions will face limited impact from the threat of satellite internet disruption, Jarden said in a Tuesday report.Starlink could emerge as a structural threat, amid SpaceX's stated ambition to move upmarket into suburban and urban premises. However, Starlink's share gains to date have not come at the expense of NBN connections. Starlink has lifted total household internet penetration, while fixed-line NBN connections have remained stable in absolute terms.Aussie Broadband's group cost growth, excluding acquisitions, will run below the consumer price index, allowing the firm to grow earnings organically ahead of market expectations despite the residential slowdown. It will compound underlying earnings before interest, taxes, depreciation, and amortization at around 21%, from fiscal year 2025 to fiscal year 2028.The investment firm upgraded its rating on Aussie Broadband to overweight from neutral and retained its AU$5.50 per share price target.

ASX:ABB
Asia

Korea Exchange Halts Kospi, Kosdaq Trading for Five Minutes After Strong Buying

The Korea Exchange activated a five-minute buy-side sidecar on the country's primary and secondary stock markets on Wednesday morning after investors rushed to buy semiconductor stocks amid an upbeat AI sector outlook despite tensions in the Middle East.The Korea Exchange announced the order at 9:06 am after the KOSPI200 Futures added 71.50 points, or 6.5%, to trade at 1,170.60, and at 9:17 am after the KOSDAQ150 Futures index added 83 points, or 6.1%, to trade at 1,439.50.A buy-side sidecar is activated when the KOSPI200 Futures index and the KOSDAQ150 Futures index rise 5% or more for at least one minute.

^KOSDAQKOSPI
Asia

China Southern Airlines Warns of Wider H1 Loss

China Southern Airlines (HKG:1055, SHA:600029) expects an attributable net loss of 3.47 billion yuan to 3.97 billion yuan for the first half, widening from 1.53 billion yuan a year earlier, according to a Tuesday filing with the Hong Kong bourse.The company attributed the expected loss to sharply higher aviation fuel costs amid geopolitical tensions, despite growth in passenger traffic and revenue during the first half.Hong Kong-listed shares of the airline were down nearly 2% in Wednesday morning trade.

HKG:1055SHA:600029