How data centres will change capital

The growing demand for technology that’s changing the way the world works is yet to hit Australian capital markets — but it’s just a matter of time, ANZ experts suggest.

According to a 2025 report from McKinsey & Company, the capital expenditure required to meet global technological demand by 2030 is forecast to be $US.67 trillion. There’s $US5.2 trillion in AI demand alone.

Growth in funding demand around the world has been rapid, but Australia’s markets have lagged by comparison. According to Gwen Greenberg, Head of DCM Australia at ANZ Institutional, that’s about to change soon.

“I think one thing that we have yet to see come to the Australian market, which is just going to exponentially affect the volumes that we see, is data centres,” she told an On Air with ANZ Institutional podcast.

“They've tapped now the US market and they've gone through there. You've seen them also coming through Europe.

“I think it's just a matter of time before… we see data centres come and further diversify within the Australian market. I think that will be another big growth change to our market.”

Greenberg made the comments in conversation with Gavin Chappell, ANZ’s Head of Loan Syndications, ahead of the 2026 ANZ Debt Conference in March.

You can listen to an edited version of the conversation — part two of a two-part discussion — on podcast below. You can click here to read part one.

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Rolls down

Chappell said funding demand would inevitably rise as the sector developed naturally.

“I still expect we'll see plenty of data and transactions in the loan space,” he said. “But equally, I think it's a sector that's going to grow significantly in the capital markets as well.

“There has been huge growth in the loan space over the past couple of years in data centre facilities globally. From everything we have seen, it will be the biggest growth asset class in the loan space over the past few years, for sure.”

All these centres require energy, of course, and Greenberg expects funding demand for that to rise in turn.

“Regulated utilities will have to supply that power,” she said. “It's just a matter of time before it rolls down to [capital markets].”

Long-term health

All this demand — for data centres and elsewhere — weighs up to long-term strength in Australian debt and capital markets, according to Chappell.

“As far as the outlook is concerned, I expect we're going to see extremely strong liquidity and competition, and that supply-demand imbalance to remain for years to come,” he said. “I don't see anything around that's going to shift that.”

That means “pretty decent deal flow” is likely looking forward, according to Chappell.

“I'm sort of reasonably optimistic about the level of activity we'll see in this market,” he said, “So I think all that's really good for both borrowers and investors.”

Both experts are conscious of the risks — “something could go wrong and we never know what that that might be”, Chappell said.

“But I think longer term, even if we do get those shock events that might impact the market, I do think the market will ultimately rebound strongly and be back in a really good position long term,” he said.

“I actually see a lot of upside for the Aussie market over coming years.”

The experts also touched optimism in the market, the focus on costs among borrowers, and the upcoming ANZ Debt Conference. Listen to the podcast above to find out more.

This note reflects an edited version of the conversation as it appears on the podcast