Goodman Group excels in Australian real estate due to increased demand for data centers.

From Investing.com: 2024-12-29 18:30:42

Goodman Group’s stock is thriving this year, outshining Australian real-estate rivals due to the AI boom fueling demand for data centers. Major cloud providers like Amazon, Microsoft, and Meta are investing heavily in data centers. Goodman’s stock has surged 45.8% as it focuses on data centers, making it Australia’s top real estate performer.

Australia’s data-center market is booming, with Blackstone acquiring AirTrunk for A$24 billion and NEXTDC raising A$4.6 billion in equity and debt. Goodman, the largest property developer in the country, caters to hyperscalers and has a significant portion of its portfolio dedicated to data center projects.

Investor sentiment is divided on Goodman’s stock rise, with concerns over rich valuations and cooling interest in data-center-focused stocks. While some caution against assuming sustainable returns, others, like John Lockton, remain optimistic about Goodman’s prospects, citing its strong pipeline and access to land with power supply for data centers.



Read more at Investing.com: Goodman Group shines among Australian property firms on data-centre push By Reuters