Goodman Group expects its work-in-progress pipeline to hit a record AU$17.5 billion (US$11.3bn) next year, driven by the growth of its data center business.

The Australian commercial property firm has been growing its data center business over recent years, with facilities in markets around the world.

As part of a financial update released today, Goodman said it currently has AU$12.4 billion (US$8bn) of work in progress, with data centers representing 68 percent of this. The figure is expected to rise to AU$17.5 billion by June 2026, with 75 percent of the work being data center-related.

Data center projects currently under construction represent 300MW of power, with this set to rise to 500MW during 2026, the company said.

The size of its total property portfolio stands at AU$85.6 billion (US$55.5bn).

CEO Greg Goodman said: “Hyperscale capex programs are growing strongly, and our metropolitan locations are central to serving cloud and related AI requirements.

“Our development activities are forecast to increase significantly through to June 2026. Commencing construction will allow us to build into demand and gain delivery timing advantages in supply-constrained markets.”

Speaking to DCD earlier today, Goodman said “90 percent” of deals his company does are with hyperscalers and established colo providers, meaning demand should remain strong even if fears about an AI bubble prove founded.

“Most of the work we’re doing is cloud-based and in markets that are currently under-supplied,” he said. “That’s a basic product that we all need. Demand for compute is going to keep growing, even if it’s not at the rate some people think. We’re not building big LLM data centers in the middle of nowhere in the US because we see the value in looking at what the hyperscalers are going to need in the next two-three years and building into that demand.”

Traditionally focused on logistics and industrial real estate, Goodman has data center projects in operation or development across Hong Kong, Australia, Germany, the US, France, and Japan.

The company recently topped out a data center in Los Angeles, California. The 32MW facility is set to be handed over next year. Last month, it also announced plans for a 97MW data center in San Jose.

Goodman said the company has a power pipeline of 5GW, with 3.4GW of this secured and ready to use, and the rest at various stages of procurement.