Goodman Group Leads $2.7 Billion Offensive to Power Hong Kong’s Digital Future

4 July 2025

Goodman Group has launched an audacious $2.7 billion venture to redefine Hong Kong’s digital infrastructure, underpinned by a consortium of global pension funds and investors. The move consolidates Goodman’s considerable position in the region, signaling an intense push to meet surging demand for data centres driven by artificial intelligence and cloud computing growth.

At the core of the initiative is the Goodman Hong Kong Data Centre Partnership (GHKDC), a newly formed entity that brings together four existing data centres under Goodman’s ownership and two facilities currently under construction. Goodman has retained a 20 percent foundational stake, while the remaining 80 percent is held by Dutch pension giant PGGM, APG, Canada Pension Plan Investment Board, CBRE Investment Management, along with an unnamed Middle Eastern institutional investor. This strategic structure combines deep-pocketed funding with Goodman’s real estate prowess to bolster digital infrastructure in one of Asia’s most critical data hubs.

By anchoring itself with high-calibre investors, Goodman addresses the considerable capital intensity of data centre development. Each facility can cost up to $1 billion owing to its high power and design requirements. But demand is outstripping supply, and Goodman's model positions the partnership to cut through bottlenecks by offering ready funding and prime land.

Hong Kong is a particularly attractive locale. Goodman now commands roughly 30 percent of the city’s data centre capacity, measured by electrical load, setting the stage for broader expansion. The venture taps into Goodman’s broader global strategy: it follows similar partnerships in Japan and Europe, with the Japan venture projected to reach $1.1 billion in assets by year’s end.

Greg Goodman, CEO of the group, describes the play as fundamental infrastructure vast, permanent and essential. He emphasizes that this is not a speculative operation but a robust, multi-year commitment to constructing data centres capable of meeting future demand from governments and hyperscale tech firms. Goodman’s strategy builds on its transformation from warehouse builder into a global digital infrastructure titan, hardwired for AI accommodation and cloud resilience.

The financial metrics already indicate support for this bet. Goodman shares rose as much as 1.6 percent following the announcement, marking its highest level in nearly five months. Earlier in the year, Goodman raised A$4 billion (approximately US$2.7 billion) to reinforce its balance sheet for future investments, part of a global push into data centre assets.

Beyond capital, the partnership unlocks Goodman’s built-in advantages: secured sites amenable to conversion from industrial holdings; assured grid connections; and an established team with global operational expertise. These dimensions underpin Goodman’s confidence in supporting a future development capacity exceeding 1 gigawatt between Hong Kong and Tokyo.

The regional and global backdrop validates Goodman's intentions. Asia is amid a data centre investment boom, with AI across sectors elevating demand for powerful infrastructure. Hong Kong’s deep connectivity with mainland China and Southeast Asia positions it as a vital node, offering companies low-latency access to sprawling AI markets . However, as Goodman’s CEO notes, constructing these mega-machines is far from trivial: they require vast capital, complex logistics and long-term planning .

Investors are increasingly drawn to data centre real estate. Pension and sovereign wealth funds view the sector as stable, income-generating, and pegged to long-term digital consumption trends. Goodman's consortium bridges the gap between high entry costs and persistent demand .

As the partnership takes shape, Hong Kong’s digital real estate landscape is set to evolve rapidly. Goodman’s dominant share, now formalized through this fund, hands the city a clear advantage in attracting global tech firms seeking secure, high-power footprints. It also establishes a blueprint for scaling data infrastructure across other APAC hotspots.

Analysts anticipate more such ventures across smart-city and AI-demanding regions. Goodman’s approach integrating warehouse-based land portfolios with data centre ambitions might well define industrial real estate’s next wave .

In sum, the launch of the $2.7 billion Hong Kong Data Centre Partnership signals a decisive pivot in Goodman’s development priorities. The stakes are massive: power-hungry digital economies require robust, dependable infrastructure, and Goodman’s consortium is geared to deliver precisely that. The coming years will test its foresight and execution, but for now the company stands at a critical frontier in the race to build tomorrow's digital backbone.