‘Big gorilla’ Stack buys into Aussie data centre business

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Builder Hickory has sold a controlling share of a key division to the US-based company as part of a $1.5 billion pipeline of growth.

Builder and developer Hickory has sold a controlling share of its data centre division to US-based Stack Infrastructurewith the purchase of a site in Melbourne’s western suburbs.

Work is well under way at Truganina in Melbourne, where Hickory is building the first of two 36 megawatt data centres on the 3.5 hectare site. Construction on each of these data centres is scheduled to start within three months and expected to be completed by the end of 2023.Mr Argyrou said such rapid expansion wouldn’t be possible without the support of a major capital partner such as Stack.“Our first phase rollout is a $1.5 billion capital expenditure – it’s good to have them as a big gorilla partner.“The build out of data centres is extraordinarily capital intensive, the sites are actually a very small fraction of the cost.

“Stack saw there was a benefit in partnering with Hickory to roll out the platform as opposed to just acquiring us and us leaving.”

 

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