AI Power Crunch: 3 ASX Stocks Positioned to Win from Soaring Data Centre Demand

Amazon just dropped a $20 billion commitment to expand its Australian AI infrastructure, and the announcement has reignited interest in ASX data centre stocks. The tech giant plans major AWS expansions in Melbourne and Sydney, joining Microsoft, Google, and Oracle in a race to build the physical infrastructure that powers artificial intelligence.
The timing is significant. Global AI adoption is accelerating faster than most anticipated, and data centre capacity has become the new bottleneck. Training large language models and running AI inference at scale requires massive computing power, and that power needs a physical home. ASX data centre stocks have already made a strong recovery since April, but investors are now wondering if this rise can continue.

What are the Best ASX stocks to invest in right now?

Check our buy/sell tips

Why Australia Matters in the AI Arms Race

Australia’s geographic position and political stability make it an attractive location for hyperscalers serving the Asia-Pacific region. Data sovereignty regulations increasingly require organisations to store certain data within Australian borders, creating captive local demand that offshore facilities can’t easily serve. Combined with the region’s explosive growth in cloud services, Australia has become a critical technology hub.
The challenge? These facilities consume enormous amounts of electricity. AI-optimised servers draw significantly more power than traditional computing equipment, and many Australian cities face grid limitations that make connecting new large-scale data centres difficult. This creates both opportunities and constraints for local operators.

The Stocks to Watch

NextDC (ASX: NXT): The Pure-Play Leader

NextDC (ASX: NXT) is one of Australia’s largest independent data centre operators, with 13 operational facilities and several new sites under construction across Melbourne, Sydney, Brisbane, and Perth. The company recently achieved NVIDIA DGX-Ready certification, signalling its facilities can support the high-density, power-hungry AI computing clusters that hyperscalers require.

-Reported approximately $404 million in revenue, with expanding EBITDA margins as newer facilities mature
-Maintains access to roughly A$2.7 billion in available liquidity for expansion
-Currently developing new data centres in Melbourne (M3) and Sydney (S3), focused on high-density, AI-capable infrastructure

NextDC offers the most direct exposure to Australia’s data centre expansion but trades at a premium valuation with an enterprise value-to-EBITDA multiple in the 45–55× range. Current prices don’t allow much room for mistakes, and it can take a long time for new contracts to start bringing in revenue. Major risks include construction delays, limited power supply, and unpredictable demand from big tech companies.

Macquarie Technology (ASX: MAQ): The Diversified Alternative

Macquarie Technology Group (ASX: MAQ) combines data centres with telecommunications infrastructure, cloud services, and software solutions. This diversification provides stability but means less pure-play exposure to the data centre boom.

-Delivered 20 consecutive half-years of EBITDA growth
-Investing heavily in the IC3 SuperWest data centre in Sydney for high-density AI workloads
-Maintains a conservative balance sheet with strong cash flows

MAQ’s integrated model, bundling connectivity, cloud, and data centre infrastructure, creates synergies that pure-play operators can’t match. The company trades at an EV/EBITDA multiple of around 15–18×, compared with NextDC’s 45–55×, meaning it’s valued at roughly one-third, not half of NextDC’s multiple. Risks include execution challenges on large capital projects and margin pressure in telecommunications from NBN competition.

AirTrunk: The Private Alternative Worth Watching

While not yet ASX-listed, AirTrunk deserves mention as Australia’s leading hyperscale data centre operator and a potential future IPO candidate. The company operates hyperscale facilities across Sydney, Melbourne, Singapore, Tokyo, Hong Kong, and Osaka, with major contracts from Microsoft, AWS, and others. AirTrunk has secured multi-billion-dollar funding facilities for expansion. Should the company eventually list, it could provide an attractive entry point with geographic diversification that purely Australian operators lack.

The Investment Case: Opportunity Meets Reality

The bull case is straightforward: AI workloads require massive computing capacity, and Australia’s data centre inventory needs significant expansion to meet demand. Amazon’s $20 billion commitment validates the structural thesis, and barriers to entry – land acquisition, power access, and planning approvals – create moats around established operators.
However, several factors warrant caution. Power constraints represent the most immediate challenge, with grid limitations in major cities making it difficult to connect new facilities quickly. Valuation risk is significant; if the AI boom proves shorter-lived than anticipated, current stock prices may not be justified. The sector experienced a similar hype cycle around cloud adoption in 2018-2020, followed by a painful correction when growth expectations weren’t met.
Capital intensity also matters. These businesses require continuous investment to grow, limiting free cash flow for shareholder returns. Investors effectively own growth optionality rather than mature cash-generating assets.

Bottom Line

The AI infrastructure buildout presents a genuine multi-year opportunity, and both NextDC and Macquarie Technology appear well-positioned to benefit. NextDC offers pure-play exposure with its hyperscale focus and NVIDIA certification, while MAQ provides a more conservative alternative with diversified revenue streams and a proven execution track record.
The recent rally suggests much near-term optimism is already priced in. Conservative investors might wait for a pullback or dollar-cost average into positions rather than buying aggressively at current levels. The theme has legs, but valuation discipline remains crucial when prices are stretched.