Industrial property giant Goodman Group aims to cash in on the explosive growth of artificial intelligence and robots to help generate its projected double-digit growth through the development of ultra-high-tech, mega-sized data centres.
Aiming to have 5 gigawatts of power in its “bank,” the global giant is undergoing a “step change” into an infrastructure-driven behemoth, with data centres located in gateway cities around the world.
Speaking at the group’s annual financial results on Thursday, co-founder and chief executive Greg Goodman said it was a new era for the $65 billion company, which first listed on the ASX in 1995 with just eight properties in Sydney and a market value of $37 million.
Artist’s impression of a data centre planned for Sydney.
The firm now boasts 436 properties in 14 countries across the world, worth a combined $78.7 billion.
Lou Pirenc, an analyst at Jarden, said the Goodman focus on infrastructure bodes well for the future.
“Combined with global demand for and pricing of AI, data and power thematics, it should set up Goodman well for the next five to 10 years,” he said in a research note to clients.
For the year ended June 30, Goodman reported an operating profit of $2.04 billion, up 15 per cent on 2022–23. It incurred a statutory loss of $98.9 million due to a number of one-off items.
It has forecast 2024–25 operating earnings to be 117.2¢ per security, up 9 per cent on the 2024 fiscal year, with an annual distribution maintained at 30¢ per security.
“Goodman will be a very different company in five years’ time,” Greg Goodman said. “It is a step change for the business. We’ll look at data centres over the next five to 10 years and the impact of growth in robotics and AI.”