Australian property developer Goodman Group’s stock has surged 45.8% this year, Reuters reported, driven by increasing demand for data centers from major tech companies pursuing AI initiatives.
Data centers now comprise 42% of Goodman’s A$12.8 billion development portfolio, up from 37% at the end of 2023. The company serves major “hyperscalers” — large cloud service providers investing heavily in AI infrastructure.
The Australian data center market has seen significant activity, including Blackstone’s A$24 billion acquisition of AirTrunk in September and NEXTDC’s A$4.6 billion capital raise.
However, analysts are divided on Goodman’s outlook. John Lockton of Sandstone Insights remains positive, citing the company’s development pipeline and strategic land holdings with power access. In contrast, Morningstar analyst Winky Yingqi Tan warns of rich valuations and potential risks from obsolescence and increased competition.
The company is positioned for its strongest performance since 2006, leading Australia’s real estate index amid growing AI-driven demand for data center capacity.
Goodman’s performance highlights the increasing importance of tech infrastructure in traditional real estate portfolios.
