Investment group Starwood, Australian telco Telstra, and data center firm Doma are partnering for a project in Sydney, Australia.

Starwood Capital Group, Doma Infrastructure Group, and Telstra InfraCo this week announced the formation of a strategic agreement to develop a carrier-neutral data center in Minchinbury, Western Sydney.

The Tier III-quality facility will offer 62MW of IT Capacity. Development approval for the site has been secured, with construction scheduled to begin in early 2026 and Ready for Service (RFS) targeted for early Q1 2028.

Starwood Capital and Doma are responsible for financing, development, construction, and ongoing management of the project. Telstra InfraCo will contribute the land and extend its connectivity infrastructure.

Private investment firm Starwood is developing a number of data centers in the US and owns a significant stake in European developer Echelon. Last year, it launched a dedicated data center unit, and significant portions of its newest fund will reportedly go to data centers. It also owns a stake in APAC real estate firm ESR, which has a significant data center footprint across Asia.

"We are excited to partner with Telstra InfraCo and Doma Infrastructure to deliver a hyperscale-ready platform in one of Asia Pacific's most strategic digital corridors," said Jonathan Pollack, president of Starwood Capital. "This investment underscores Starwood Capital's commitment to supporting critical infrastructure alongside trusted local partners, while expanding our investment activity in Australia's high-growth economy."

Doma was launched at the end of last year, with plans to build out 1.5GW of capacity in Thailand. The company said at the time it was backed by a US real estate fund, which is working with the company as its platform for Asia, and had plans for wider expansion across the region. In January, the firm said it was planning a 50-60MW development in Western Sydney, though few details were available.

"With hyperscale and AI infrastructure demand surging, this project arrives at the right place and the right time," added Clement Goh, CEO of Doma Infrastructure Group. "Together with Telstra InfraCo and with the support of Starwood Capital, we're delivering infrastructure that meets tomorrow's compute challenges with speed, scale, and sustainability."

Dipan Patel, digital infrastructure solutions executive at Telstra InfraCo, added: "This agreement is a step forward in delivering Telstra's Connected Future 30 strategy. The commercial partnership with Starwood Capital and Doma Infrastructure and equipping the data centre with our connectivity assets creates a strong foundation for delivering next-generation workloads at scale, enabling the infrastructure that supports the rapid growth of AI and emerging technologies."

Across Australia, Telstra offers colocation out of facilities across Wellington, Western Australia; Waymouth, South Australia; Exhibition and Clayton, Victoria; Deakin, Australian Capital Territory; St Leonard's, New South Wales; and Woolloongabba, Queensland.

As well as owning and managing data centers, the company has partnered with Digital Realty, Equinix, and NextDC to offer services across Adelaide, Brisbane, Melbourne, Perth, and Sydney.