Goodman Group (ASX:GMG), a leading global data center REIT, expands its data center pipeline to meet accelerating digital infrastructure demand.

Goodman Group (ASX:GMG) has expanded its data centre development program as demand for cloud computing, artificial intelligence, and other digital infrastructure continues to grow across major global markets.

As of 30 June 2026, Goodman reported AUD 19.7 billion in development work in progress (WIP), with data centre projects comprising 78% of that total. The group has also expanded its global data centre power bank to 6.4 gigawatts across 16 major cities. These figures underscore the growing significance of data centres within Goodman’s development portfolio, running parallel to its established logistics property operations.

**FY2026 Results**

For FY2026, Goodman reported operating profit of AUD 2.67 billion, a 15.7% increase from the prior financial year. Operating earnings per security rose 10.1% to 129.9 cents. Statutory profit attributable to securityholders reached AUD 2.78 billion, compared with approximately AUD 1.67 billion in FY2025. Net tangible assets increased 6.9% to AUD 11.79 per security. The group maintained its FY2026 distribution at 30 cents per security. As of 30 June 2026, Goodman’s total property portfolio was valued at AUD 89.0 billion, with portfolio occupancy standing at 95.6%.

**Data Centre Pipeline**

Development work in progress grew 53% during FY2026 to AUD 19.7 billion across 50 projects in 12 countries. Data centre developments accounted for 78% of WIP, equivalent to approximately AUD 15.4 billion. As of 30 June 2026, Goodman reported approximately 0.5 gigawatts (GW) of powered-shell and fully fitted data centre capacity under development. Current projects span Australia, Asia, continental Europe, and the Americas. Most facilities under construction are expected to reach their initial ready-for-service dates progressively, with the majority scheduled for calendar 2028.

**Global Power Bank**

Goodman’s global data centre power bank reached 6.4 GW across 16 major cities at the end of FY2026. Of this total, 3.6 GW was classified as secured power, with a further 2.8 GW in advanced stages of procurement. This represents an increase from the 5.0 GW power bank across 13 cities recorded at the end of FY2025. Additionally, the group reported approximately 0.7 GW of stabilised data centre capacity within its existing portfolio. Goodman identifies access to power, land, planning approvals, and network infrastructure as critical components for large-scale data centre development.

**Development Activity**

Development earnings were the primary driver of Goodman’s FY2026 operating result, rising 33.9% to AUD 1.79 billion. During the year, the group commenced developments valued at AUD 8.1 billion and completed projects worth AUD 3.6 billion. Completed developments achieved an 89% lease rate. The overall WIP portfolio carries an expected development yield on cost of 8.2%, while FY2026 development commencements carry a forecast yield on cost of approximately 9.2%. Approximately 71% of current development WIP is being undertaken for Goodman’s partnerships or third-party clients.

**Capital Partnerships**

Goodman continued to expand its investment management platform throughout FY2026, with external assets under management reaching AUD 75.4 billion. The group raised approximately AUD 3.2 billion through third-party capital initiatives and established four new capital partnerships, bringing the total to 26. As of 30 June 2026, the partnership platform held AUD 6.7 billion in cash and undrawn debt, alongside approximately AUD 5.7 billion in conditional equity commitments. These partnerships support both logistics and data centre development and ownership. Notably, approximately 90% of Goodman’s current data centre projects, including available expansion capacity, are held within dedicated data centre partnerships.

**Balance Sheet**

Goodman’s balance sheet remained conservatively geared at the end of FY2026. Group-level gearing stood at 6.5%, up from 4.3% a year earlier. Look-through gearing, which incorporates Goodman’s share of debt within its partnerships, was 19.5%. The group reported AUD 6.4 billion in liquidity through cash and undrawn credit facilities. Interest coverage ratios were 25.4 times at the group level and 9.5 times on a look-through basis. These strong funding metrics support the ongoing expansion of Goodman’s development program.

**Data Centre Development**

Goodman has been involved in data centre properties since 2005, steadily expanding its specialist development capabilities in response to growing digital infrastructure demand. Its project portfolio spans powered-shell builds, fully fitted facilities, and large-scale data centre campuses. The group notes that cloud computing and AI inference are driving infrastructure requirements in major metropolitan areas. Goodman’s development approach prioritises securing sites, power capacity, planning approvals, and supporting infrastructure before advancing construction. As of 30 June 2026, active data centre development sites contained approximately 1.3 GW of potential future expansion capacity, separate from the 0.5 GW already classified as work in progress.

**Development Risks**

Goodman’s expanding data centre programme introduces execution requirements that differ significantly from conventional logistics development. Large-scale data centres demand substantial electricity connections, specialised equipment, planning approvals, and considerable capital expenditure. Construction timelines are often contingent on the availability of electrical infrastructure, transformers, cooling systems, and other specialised components. Customer commitments and leasing arrangements also play a critical role, particularly when construction commences while commercial negotiations remain ongoing. Consequently, Goodman advances power procurement, construction, customer negotiations, and capital partner arrangements in parallel with the physical delivery of each project.

**FY2027 Outlook**

Looking ahead, Goodman is targeting operating earnings per security growth of 9% for FY2027, building on the 10.1% increase recorded in FY2026. The group expects development activity to remain a key earnings driver as projects within its AUD 19.7 billion WIP portfolio advance through construction. Overall operating performance will continue to reflect logistics property income, development margins, investment management earnings, and the phased delivery of data centre projects. Goodman enters FY2027 with a 6.4 GW global power bank, AUD 15.4 billion in data centre development WIP, and a robust network of capital partnerships supporting its broader development strategy.

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