Smart investment strategies in data centres for ASX investors in 2025
Although interest and use of data centres have been growing for years, 2024 is arguably the year that these digital assets first entered the ASX conscience as a mainstream investment strategy.
With companies like Microsoft and Amazon investing heavily in data centres, it was only a matter of time before ASX investors would want to follow suit.
Investing in data centres is still a relatively new investment strategy. As such, it can be hard to know exactly how to get the best bang for your buck on the ASX.
So today, let's discuss how to pursue such a strategy.
Data centre investing strategies on the ASX
Goodman Group (ASX: GMG)
The first, and arguably best, data centre investment on the ASX is Goodman Group. Goodman Group is a real estate investment trust (REIT) with a huge property portfolio. It invests in real estate assets ranging from industrial warehouses to logistical hubs.
However, one of Goodman's largest investments is its data centre portfolio. Goodman has been steadily growing this portfolio for many years now and today operates data centres in North America, Europe, Hong Kong, Japan, Australia, and New Zealand.
As it stands today, Goodman's global data centre powerbank stands at 5 gigawatts, with another 2.5 gigawatts "in advanced stages of procurement". Data centres now make up over 40% of Goodman's global workbook.
If you are looking for a quality data centre-based investment, it's hard to go past Goodman Group.
But Goodman isn't the only data centre play on the ASX. Investors also might want to consider a new kid in town.
DigiCo Infrastructure REIT (ASX: DGT)
It was only earlier this month that the DigiCo Infrastructure REIT hit the ASX boards in an IPO.
Digico is another REIT, but one that exclusively operates a data centre investing strategy.
As we covered earlier this month, Digico already owns three data centre properties in the United States and is on track to acquire another ten centres by the end of 2024.
Two of those centres are also in the United States, with the remaining eight spread across Australia. One of Digico's now-flagship projects is the $1.94 billion 'Global Switch Australia' centre in Sydney's CBD.
Digico's 13 properties will have 44 megawatts of installed IT capacity and 193 megawatts of future IT expansion capacity.
If you're after an investment strategy that solely focuses on data centres, it's hard to look past Digico.
The post Smart investment strategies in data centres for ASX investors in 2025 appeared first on The Motley Fool Australia.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Amazon and Microsoft. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Goodman Group, and Microsoft. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Amazon, Goodman Group, and Microsoft. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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