Australia’s data centre growth fuels ASX stock opportunities

Data down under

Australia’s data centre sector is surging, fuelled by rapid cloud uptake, artificial intelligence (AI) growth and rising digital sovereignty needs.

With strong subsea cable links to both Asia and the United States (US), Australia has become a critical connectivity hub for the broader Asia-Pacific (APAC) region.

Australia’s data centre sprawl chart

What’s NextDC?

NextDC (ASX:NXT)

NextDC is building a $7 billion, 650 megawatt data centre in Sydney’s Eastern Creek – set to become the biggest in the southern hemisphere – and has secured ChatGPT owner OpenAI as its major customer.

The deal marks a significant step in Australia’s bid to establish itself as a regional hub for fast-growing global data centre investment.

Treasurer Jim Chalmers has hailed the deal as significant for Australia, saying it will provide thousands of direct and indirect jobs.

NextDC buy/sell indicators and analyst projections

Brokers are similarly upbeat, with Morgan Stanley recently upgrading its price target to $21 with an overweight position, suggesting the stock can rally close to 50% from current levels.

Meanwhile, Ord Minnett believes the partnership with OpenAI could lift NextDC’s equity value by roughly $2.10 per share by financial year (FY) 2030 – 31. It lifted its price target to $20.50 and maintained a 'buy' recommendation.

NextDC historical trends and price targets

However, shares have underperformed over the past 12 months and ASX Tradewatch data show the trend appears weak, with little demand from investors for the stock.

The 200-day moving average (MA) is sloping downwards while recent price action has been weak, suggesting investors should proceed with caution.

NextDC daily candlestick chart

Other plays 

Macquarie Technology Group (ASX:MAQ)

Luke Winchester prefers Macquarie Technology Group, which operates three data centre campuses – two in Sydney and one in Canberra.

Shares have fallen close to 30% year-to-date, and technical data also shows they are in a near-downtrend, specifically confirmed by a drop in the 20-day MA, suggesting investors see better opportunities elsewhere.

Macquarie Technology Group daily candlestick chart

However, with an average 'buy' broker recommendation and mean target price of $87.70, the stock could run a further 38% if it hit those targets.

Macquarie Technology Group historical trends and price targets

Morgan Stanley is overweight the stock with an $85 target price and has forecast FY2026 earnings per share (EPS) of $1.238.

Macquarie Technology Group buy/sell indicators and analyst projections

Goodman Group (ASX:GMG)

Goodman Group shares have fallen around 22% over the past 12 months and appear to be in a long-term bearish trend, confirmed by multiple indicators.

Brokers are upbeat on the stock with an average target price around $38, suggesting 28% upside.

Goodman Group daily candlestick chart

Digico Infrastructure REIT (ASX:DGT)

Digico Infrastructure REIT – a diversified owner, operator and developer of data centres with a global portfolio.

ASX Tradewatch data show sentiment for this stock, which is down 45% over the past 12 months, may be improving.

The demand, supply balance for the stock is stabilising, suggesting either a pause in its current downtrend or the possibility of an uptrend.

The average broker recommendation is a 'buy', according to Refinitiv, with a $3.90 price target, suggesting 56% upside.

Digico Infrastructure REIT historical trends and price targets