Australian data centre operators now see the US as a tougher place to grow, just as demand from artificial intelligence workloads explodes globally. HMC Capital is redirecting funds from a USD750 million sale of DigiCo’s Chicago data centre into its flagship Sydney facility, treating Australia as the safer expansion market.
Local executives acknowledge that while AI demand keeps rising, not every proposed megaproject will get built in practice. They are planning around what can be realistically delivered rather than headline capacity numbers.
HMC Capital is pivoting away from the US after running into increasingly restrictive planning and political environments. At least 14 US states are weighing moratoriums or pauses on new data centre developments, driven by concern over water consumption and pressure on already stretched electricity grids.
DigiCo’s two proposed data centres in Los Angeles ran into organised community resistance, halting progress and undermining earlier assumptions about a clear path to approval. Those stalled West Coast projects are now being reviewed as financial assets rather than future operating facilities.
DigiCo is “exploring options to realise value” from the blocked Los Angeles developments, with a sale of the assets now expected rather than long-term operation. The shift frees up capital and management attention for Australian sites, especially Sydney, where planning settings and community sentiment are more supportive.
The pullback from US growth ambitions shows how quickly community pushback can reshape global infrastructure strategies. It also reinforces Australia’s emerging position as a relative safe harbour for hyperscale data centre expansion, at least for now.
