Australia’s AirTrunk has secured an A$4.25 billion (US$2.98 billion) green loan for the SYD3 hyperscale data centre expansion project in Western Sydney. Announced on October 27, 2026, the financing will support digital infrastructure development. Therefore, it will help meet rising demand for cloud computing, artificial intelligence (AI) and enterprise data services.
The financing brings together 32 local and international financial institutions, making it one of the largest lending groups assembled for an Australian data centre project. The expanded SYD3 development is expected to support more than 10,000 jobs across construction, engineering, trades, logistics and safety, with completion anticipated by mid-2028.
The project is part of AirTrunk’s wider investment in Australia’s digital infrastructure. The company says its Australian platform comprises five campuses with more than 1.2 gigawatts (GW) of capacity. It has invested more than A$12 billion in Australian projects and plans to invest a further A$75 billion over the next decade.
SYD3 Data Centre Expansion Project and Technical Specifications
The SYD3 campus is located in Western Sydney and was originally announced in 2021 with more than 320 megawatts (MW) of planned IT capacity. AirTrunk’s current project information describes a campus exceeding 400MW, reflecting the development’s expanded scale.
According to AirTrunk, the campus occupies approximately 8.3 hectares and includes 42 data halls, about 70,000 square metres of technical data hall area and 9,600 square metres of office and storage space. It is designed around a 132-kilovolt high-voltage power supply and a power usage effectiveness (PUE) target of 1.15. PUE measures total facility energy use against the energy consumed by IT equipment.A lower figure indicates that less additional energy is used for supporting infrastructure.
The development will provide secure computing and storage infrastructure for cloud platforms, AI workloads and enterprise services. These facilities require reliable electricity, cooling systems, backup power, fire protection, physical security, telecommunications connections and sophisticated monitoring systems.
Construction therefore involves more than the erection of data halls. It requires coordinated civil, structural, mechanical and electrical works, as well as the installation and commissioning of high-density computing infrastructure. The project also depends on the timely delivery of transformers, switchgear, generators, cooling equipment, server infrastructure and other specialised components.
The expanded SYD3 campus is intended to increase AirTrunk’s ability to accommodate customers requiring large-scale computing capacity. Its final operating performance will depend on the completion of construction, power infrastructure, equipment installation and commissioning.
A$4.25 Billion Green Loan for SYD3 Data Centre Expansion Backed by 32 Financial Institutions
The A$4.25 billion facility is structured as a green loan with margin adjustments. AirTrunk said contributions from financing-related margin savings will be directed to its social impact programme . It will support initiatives involving science, technology, engineering and mathematics (STEM) education, digital equity, biodiversity and conservation, sustainable innovation and disaster relief.
Fourteen banks underwrote the facility, while the wider lending consortium comprises 32 financial institutions. The lead underwriters are:
- Banco Santander
- BNP Paribas
- Crédit Agricole Corporate and Investment Bank
- DBS Bank
- Deutsche Bank
- ING Bank
- Mizuho Bank
- MUFG Bank
- National Australia Bank
- Royal Bank of Canada
- Société Générale
- Sumitomo Mitsui Banking Corporation
- The Hongkong and Shanghai Banking Corporation (HSBC)
- United Overseas Bank (UOB)
- Sumitomo Mitsui Banking Corporation .
- HSBC and UOB acted as green loan coordinators.
- Mallesons served as borrowers’ legal counsel, while Gilbert + Tobin advised the lenders.
The transaction takes AirTrunk’s total committed debt financing to approximately A$38.4 billion globally, including more than A$19.8 billion associated with its Australian projects.
The financing demonstrates the scale of capital required to develop hyperscale facilities as demand for AI computing and cloud services grows. However, the loan is debt financing and should not be confused with a government grant or a direct investment of the same amount in construction expenditure.
A W Edwards Leads Construction Delivery
Construction of the expanded SYD3 campus is being led by A W Edwards, the Australian subsidiary of Bouygues Construction. In July 2026, Bouygues Construction announced an expanded contract valued at €1.2 billion for continued delivery of the 400MW-plus campus. The works were scheduled to commence that month, with completion anticipated by mid-2028.
The contractor’s scope involves delivering the physical and technical infrastructure needed to support the data center’s operations. This includes coordinating construction trades, specialized equipment installation, logistics and the complex interfaces between structural works and electrical and mechanical systems.
The programme is also expected to create opportunities for Australian suppliers. AirTrunk identifies steel and precast manufacturing, freight and logistics, civil engineering, and electrical and mechanical services among the areas benefiting from project activity.
The company is using a 25,000-square-metre logistics buffer zone in Western Sydney to store, stage and pre-commission critical equipment before delivery to the campus.
The phased approach therefore improves coordination across the large construction site. Equipment availability and installation schedules can affect progress. Moreover, data centre construction requires building completion to align with the delivery and commissioning of power, cooling and IT systems.
Bouygues Construction is also reducing environmental impacts by using lower-carbon concrete and Australian-made steel reinforcement. Additionally, it is recovering and reusing construction waste, with a target of diverting 90% of non-hazardous waste from landfill.
SYD3 Data Centre Expansion Project: Sustainability and Energy Requirements
The green financing supports AirTrunk’s wider sustainability commitments, including its target of net-zero Scope 1 and Scope 2 emissions by 2030. The company identifies energy efficiency, renewable energy matching and lower-carbon technologies as part of its approach, alongside efforts to reduce embodied carbon in new data centre construction.
AirTrunk says SYD3’s design targets a PUE of 1.15 and that the campus is intended to use approximately 80% less water than a traditional data centre. These are design and performance claims from the developer; actual operating outcomes will depend on facility conditions, computing loads, cooling requirements and the final operating configuration.
Electricity availability remains a critical consideration for data centre development. Facilities of this scale require substantial and reliable power, while the growth of AI workloads increases demand for energy-intensive computing. Grid connection capacity, power supply agreements and energy storage arrangements can therefore influence the timing and resilience of operations.
The financing announcement itself does not provide a full breakdown of SYD3’s electricity consumption, renewable energy allocation or emissions performance. These details will be important in assessing the project’s long-term environmental performance.
Economic Impact and Delivery Outlook
The expansion is expected to support more than 10,000 jobs across construction, engineering, logistics, trades and safety. This is a projected employment contribution over the project, not a claim that all positions are permanent or will exist simultaneously.
For Western Sydney, the development creates opportunities for local subcontractors, equipment suppliers, manufacturers and technical workers. Also,it adds capacity to Australia’s digital infrastructure market as businesses and public institutions increase their reliance on cloud services and AI applications.
Nevertheless, large data centre developments face challenges involving financing costs, access to electricity, equipment supply chains, community expectations and environmental performance. AirTrunk’s green loan provides funding support, but successful delivery will still depend on construction progress, reliable power infrastructure and commissioning of the completed facility.
With construction underway and completion expected by mid-2028, SYD3 is a major component of AirTrunk’s Australian expansion strategy. The A$4.25 billion financing underlines the capital required to deliver hyperscale computing infrastructure and the growing role of sustainable finance in supporting the sector. This is also being mirrored in other countries, including Austria where German chip maker Infineon plans a US$1.23 billion expansion of its semiconductor manufacturing plant in Villach.
SYD3 Data Centre Expansion Project Fact Sheet
Project: AirTrunk SYD3 Data Centre Expansion
Location: Western Sydney, New South Wales, Australia
Project owner and operator: AirTrunk
Parent-company backing: Blackstone-backed AirTrunk
Project type: Hyperscale data centre and digital infrastructure
Financing secured: A$4.25 billion, approximately US$2.98 billion
Financing type: Green loan with margin adjustments
Campus capacity: More than 400MW
Site area: Approximately 8.3 hectares
Technical data hall area: Approximately 70,000 square metres
Data halls: 42
Power infrastructure: 132kV high-voltage supply
Design PUE: 1.15
Principal construction contractor: A W Edwards, a subsidiary of Bouygues Construction
Reported expanded construction contract: €1.2 billion, announced by Bouygues Construction in July 2026
Expected completion: Mid-2028
Projected employment: More than 10,000 jobs supported across construction and related activities
Lead financing institutions: A consortium of 32 lenders, with 14 lead underwriters
Environmental measures: Lower-carbon construction materials, waste recovery, energy efficiency and renewable energy matching
Project status: Construction underway; expansion financing secured in October 2026.
Companies and Project Team
AirTrunk: Project developer, owner and data centre operator.
Blackstone: Investment firm backing AirTrunk.
Bouygues Construction: Parent company of A W Edwards; announced the expanded €1.2 billion construction contract.
Crédit Agricole Corporate and Investment Bank: Lead loan underwriter.
DBS Bank: Lead loan underwriter.
Deutsche Bank: Lead loan underwriter.
ING Bank: Lead loan underwriter.
Mizuho Bank: Lead loan underwriter.
MUFG Bank: Lead loan underwriter.
National Australia Bank: Lead loan underwriter.
Royal Bank of Canada: Lead loan underwriter.
Société Générale: Lead loan underwriter.
Sumitomo Mitsui Banking Corporation: Lead underwriter and green loan coordinator.
HSBC: Lead underwriter and green loan coordinator.
United Overseas Bank: Lead underwriter and green loan coordinator.
Mallesons: Borrowers’ legal counsel for the financing.
Gilbert + Tobin: Lenders’ legal counsel for the financing.
Engineering consultants and specialist subcontractors: Individual appointments were not comprehensively identified in the cited financing announcement.
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