The SYD3 data centre expansion has secured a $2.98 billion green loan to accelerate construction of a hyperscale digital infrastructure campus in Western Sydney, Australia. The financing will support additional computing capacity for cloud services, artificial intelligence (AI) and enterprise applications. AirTrunk announced the A$4.25 billion financing on October 27, 2026, backed by 32 local and international financial institutions. The development reflects growing investment in large-scale data centers as businesses and governments expand their digital operations.
The project also highlights how sustainable financing is becoming increasingly important in digital infrastructure construction. However, its delivery will depend on managing energy requirements, construction supply chains and environmental performance. The expanded SYD3 campus is under construction, with completion expected by mid-2028.
SYD3 Data Centre Expansion Secures Major Green Financing
The US$2.98 billion facility represents a major financing milestone for the Western Sydney development. According to AirTrunk, 14 lead banks underwrote the loan, while the wider consortium comprises 32 financial institutions.
The underwriting banks include National Australia Bank, Deutsche Bank, ING, BNP Paribas, HSBC, MUFG and Mizuho Bank. Other participants include Santander, Crédit Agricole, DBS, Royal Bank of Canada, Société Générale, Sumitomo Mitsui Banking Corporation and United Overseas Bank.
Moreover, the financing incorporates margin adjustments linked to its green loan structure. AirTrunk intends to direct contributions from financing margin savings towards its social impact program. The program supports initiatives covering STEM education, digital inclusion, biodiversity conservation, sustainable innovation and disaster relief.
The transaction increases AirTrunk’s committed debt financing to approximately A$38.4 billion globally. Australian projects account for more than A$19.8 billion of that commitment. The company has invested over A$12 billion in Australian projects and plans another A$75 billion over the next decade.
SYD3 Data Centre Expansion Targets Sustainable Construction
The development will strengthen Western Sydney’s capacity to accommodate digital workloads and growing AI computing demand. AirTrunk expects the project to support more than 10,000 jobs across construction, engineering, trades, logistics and safety. Contractors and suppliers could benefit from work involving civil construction, steel, precast manufacturing and mechanical and electrical services.
To improve supply chain coordination, AirTrunk is using a 25,000-square-metre strategic buffer zone in Western Sydney. The facility will store, stage and pre-commission critical equipment before delivery to the construction site. Additionally, dedicated time-charter vessels will help transport equipment through Port Botany, Port Kembla and other supply routes.
Environmental measures form another part of the construction strategy. AirTrunk plans to use lower-carbon steel and concrete while diverting at least 90% of non-hazardous construction waste from landfill. These measures support its target of achieving net-zero Scope 1 and Scope 2 emissions by 2030. The company also intends to reduce Scope 3 emissions through lower embodied carbon in new data centre construction.
The project also faces the wider challenge of securing reliable electricity for energy-intensive computing infrastructure. AirTrunk has secured electricity supply agreements and partnered with two organisations to develop a large-scale battery energy storage system. These arrangements support its broader infrastructure strategy as demand for cloud and AI services grows.
SYD3 Data Centre Expansion Strengthens Regional Digital Infrastructure
The expanded campus will provide computing and storage infrastructure for businesses, government, education and essential services. Consequently, the project could reinforce Western Sydney’s role in Australia’s growing digital economy. Its construction will also create opportunities for regional contractors, manufacturers and specialist engineering suppliers.
AirTrunk’s Australian portfolio spans five campuses with more than 1.2 gigawatts of capacity. The SYD3 development forms part of its broader strategy to expand hyperscale infrastructure across the Asia-Pacific region.
Nevertheless, the scale of data centre investment raises questions about electricity demand, financing exposure and environmental performance. The project’s green financing framework and construction targets provide measurable commitments, although actual outcomes will depend on implementation and reporting.
With completion expected by mid-2028, SYD3 represents a significant construction undertaking for Western Sydney. Its progress will demonstrate how large-scale digital infrastructure projects combine financing, supply chain management and sustainability objectives.
AirTrunk’s $2.98 billion green loan for the SYD3 data centre expansion also reflects Australia’s growing pipeline of large-scale AI infrastructure projects. In New South Wales, the proposed Kurri Kurri data centre development could attract more than A$4 billion in investment and deliver approximately 540MW of capacity. AirTrunk plans the facility on former aluminium smelter land at Loxford, near Kurri Kurri, with Anthropic reportedly in discussions to anchor the development.
While SYD3 is progressing with a major financing package, Kurri Kurri remains subject to planning approvals. Together, the projects highlight the scale of investment and infrastructure planning required to meet Australia’s growing demand for AI computing capacity.
Project Fact Sheet
Name: AirTrunk SYD3 hyperscale data centre campus expansion.
Location: Western Sydney, New South Wales, Australia.
Type: Hyperscale data centre and digital infrastructure development.
Financing value: A$4.25 billion, approximately $2.98 billion.
Financing structure: Green loan supported by 32 local and international financial institutions.
Lead underwriters: 14 banks.
Planned capacity: More than 400 megawatts.
Main purpose: Expand infrastructure supporting cloud computing, artificial intelligence and enterprise services.
Construction status: Underway.
Expected completion: Mid-2028.
Employment impact: More than 10,000 jobs expected across construction, engineering, trades, logistics and safety.
Sustainability measures: Lower-carbon steel and concrete, waste diversion and emissions reduction.
Construction waste target: Divert at least 90% of non-hazardous construction waste from landfill.
Renewable energy and storage: Electricity supply agreements and a planned large-scale battery energy storage system.
Equipment logistics: A 25,000-square-metre strategic buffer zone in Western Sydney.
Financing coordinators: Sumitomo Mitsui Banking Corporation, HSBC and United Overseas Bank.
Financial objective: Support continued development of SYD3 while incorporating sustainability-linked financing incentives.
Project Team
Owner and developer: AirTrunk.
Construction contractor: A W Edwards.
Green loan lead underwriters:
- 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
- HSBC
- United Overseas Bank
Green loan coordinators:
- Sumitomo Mitsui Banking Corporation
- HSBC and United Overseas Bank
Borrower’s legal adviser: Mallesons.
Lenders’ legal adviser: Gilbert & Tobin.
Construction supply chain: Contractors and suppliers covering civil works, steel and precast manufacturing, freight, logistics, electrical systems and mechanical services.
Energy infrastructure partners: Two organizations partnering with AirTrunk on a large-scale battery energy storage system; their names were not specified in the cited announcement.
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