Dona Ferentes
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MAQ - Macquarie Technology Group
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Dona Ferentes
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Another datacenter. To be built in Canberra, as a response to increased demand for Govt cloud and cyber security services. Funded through an ANZ led syndicated banking facility.
So, pretty easy work, really. Volume and margins assured. ... Next.
So, pretty easy work, really. Volume and margins assured. ... Next.
galumay
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I don't get the attraction, basically a low margin real estate business. Profit margins are sad, but its the free cash flow over the years that tells the real story.
Dona Ferentes
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FY .... >>> Outlook
● The Company’s EBITDA will continue to grow in FY21. However, 2H FY21 will be relatively flat compared to 1H FY21 driven by investment in sales and operational resources to support continued growth
● There are ongoing opportunities in the Telecom business as customers look to strengthen online footprints and their customer facing options through demand for new technologies, including SDWAN and business nbnTM
● We will continue to develop public cloud capability to enhance the current hybrid cloud offering
● Continued demand from Federal Government Agencies gives great confidence for future growth in the Government Business. The further investments to expand capacity in IC5 Bunker in Canberra will provide capability and scope to meet this demand
● Depreciation and amortisation (post AASB16) for FY21 is expected to be $45 to $48 million. Telecom depreciation will increase from $15.3 million in FY20 to $17 to $18 million in FY21 and Hosting from $26.0 million in FY20 to $28 to $30 million in FY21
● The Company plans to make a significant investment in growth and customer growth capex during FY21. Total capex is expected to be between $140 to $148 million consisting of:
– Growth Capex - $100 to $104 million (including $82 to $85 million for IC3)
– Customer Growth - $22 to $24 million – Maintenance Capex - $18 to $20 million
● Telecom capex will decrease from $22.8m in FY20 to $15 to $16m in FY21 as the core network roll out is completed (growth capex)
● The Macquarie Park Data Centre Campus will provide 43MW in total load on completion. Development of Macquarie Intellicentre 3 (IC3) East, expands the Group’s data centre capacity from a total load of 10MW to 28MW and is progressing to plan. The campus is designed to meet the growing needs of global hyperscalers and cloud, enterprise and government customers
● As announced in June, to improve investor visibility of the value being created, Macquarie Data Centres will be reported as a separate segment from 1 July 2020 (....and what are the chances of this being spun off, down the track, then?)
● The Company’s EBITDA will continue to grow in FY21. However, 2H FY21 will be relatively flat compared to 1H FY21 driven by investment in sales and operational resources to support continued growth
● There are ongoing opportunities in the Telecom business as customers look to strengthen online footprints and their customer facing options through demand for new technologies, including SDWAN and business nbnTM
● We will continue to develop public cloud capability to enhance the current hybrid cloud offering
● Continued demand from Federal Government Agencies gives great confidence for future growth in the Government Business. The further investments to expand capacity in IC5 Bunker in Canberra will provide capability and scope to meet this demand
● Depreciation and amortisation (post AASB16) for FY21 is expected to be $45 to $48 million. Telecom depreciation will increase from $15.3 million in FY20 to $17 to $18 million in FY21 and Hosting from $26.0 million in FY20 to $28 to $30 million in FY21
● The Company plans to make a significant investment in growth and customer growth capex during FY21. Total capex is expected to be between $140 to $148 million consisting of:
– Growth Capex - $100 to $104 million (including $82 to $85 million for IC3)
– Customer Growth - $22 to $24 million – Maintenance Capex - $18 to $20 million
● Telecom capex will decrease from $22.8m in FY20 to $15 to $16m in FY21 as the core network roll out is completed (growth capex)
● The Macquarie Park Data Centre Campus will provide 43MW in total load on completion. Development of Macquarie Intellicentre 3 (IC3) East, expands the Group’s data centre capacity from a total load of 10MW to 28MW and is progressing to plan. The campus is designed to meet the growing needs of global hyperscalers and cloud, enterprise and government customers
● As announced in June, to improve investor visibility of the value being created, Macquarie Data Centres will be reported as a separate segment from 1 July 2020 (....and what are the chances of this being spun off, down the track, then?)
Dona Ferentes
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Announced today: NBN Co will slash wholesale enterprise broadband prices and invest $700 million over the next three years, as it ramps up its bid to challenge Telstra as the dominant wholesale business broadband provider. The announcement, ahead of the latest corporate plan to be released on Wednesday, will make its CBD prices available to 700,000 suburban and regional businesses.....
Under this plan, NBN Co will build fibre optic cable out to a business premises free of charge, and then provide its enterprise ethernet plan. All this must be done through a retailer, meaning NBN Co will rely on major providers such as Telstra, Optus and TPG getting on board. One industry source said most providers apart from Telstra were likely to welcome the move, as it would break the TLS stranglehold on the sector.
Under this plan, NBN Co will build fibre optic cable out to a business premises free of charge, and then provide its enterprise ethernet plan. All this must be done through a retailer, meaning NBN Co will rely on major providers such as Telstra, Optus and TPG getting on board. One industry source said most providers apart from Telstra were likely to welcome the move, as it would break the TLS stranglehold on the sector.
over9k
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Until you see how much enterprise ethernet plans actually cost. I'll post the numbers on this in a moment.
over9k
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The full 1000/400 is available on all fibre connections and 7% of coaxial connections. The 250/100 is available on all fibre connections and 70% of coaxial connections. Unless you are on fibre to the node, you do not need enterprise ethernet.
If you do, I was quoted $1500 for it to be installed vs $4k for a fibre connection to be installed. So the more expensive fibre connection would pay for itself in just a few months.
This is a total nothingburger.
Dona Ferentes
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they play the 'local angle' .....
MTU is now well into the $40 to $50 per share range since July, and has had a pivot away from pure telecoms towards data, the cloud and specifically data centres, as well as attendant cyber security, as the sector rides a wave of increased demand for information storage, spurred on during the pandemic disruption.
MAQ's three data centres at Macquarie Park will have a total capacity of 43 megawatts and, when the campus is completed, the data centres business of Macquarie Telecom Group will have invested close to $500 million. Another data centre is nearing completion at Macquarie's Canberra campus, which will hold two facilities.
MTU is now well into the $40 to $50 per share range since July, and has had a pivot away from pure telecoms towards data, the cloud and specifically data centres, as well as attendant cyber security, as the sector rides a wave of increased demand for information storage, spurred on during the pandemic disruption.
MAQ's three data centres at Macquarie Park will have a total capacity of 43 megawatts and, when the campus is completed, the data centres business of Macquarie Telecom Group will have invested close to $500 million. Another data centre is nearing completion at Macquarie's Canberra campus, which will hold two facilities.
Such uptake added to broader trends already driving demand for data storage, including the journey to the cloud, as more companies shifted their operations online, the internet of things, as well as e-commerce and the automation of supply chains.
Dona Ferentes
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There's been sustained buying of MAQ in the last 6 trading days, lifting to an all-time high of $56.60
(one big dump on 05/07 around $52, and the indigestion seems to have cleared)
(one big dump on 05/07 around $52, and the indigestion seems to have cleared)
Dona Ferentes
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Planning for a new Data Centre, at the Macquarie Park Data Centre Campus, within the Sydney North Zone. It will be called IC3 Super West and will be the largest data centre on the campus, adding 32MW of IT Load to bring the total campus IT Load to 50MW over time. IC3 Super West is designed to seamlessly interconnect with IC3 East.
... this will be the 5th Centre, with 3 in Sydney and 2 in Canberra
.... Numbers have been confirmed: FY21 EBITDA will be within the previously announced guidance of $72 to $75 million.
... this will be the 5th Centre, with 3 in Sydney and 2 in Canberra
.... Numbers have been confirmed: FY21 EBITDA will be within the previously announced guidance of $72 to $75 million.
Dona Ferentes
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Key Points.
• Eight consecutive years of EBITDA growth.
• Full year revenue of $309.3 million, an increase of 8.5% compared to $285.1 million for FY21.
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $88.4 million, an increase of 19.8% from prior year, at the top end of June’s guidance.
• Conversion of EBITDA to operating cash flows generated total operating cash flows of $98.0 million during the year. There is a closing cash balance of $3.0 million and undrawn debt facilities of $64.0 million having drawn down $126.0 million.
• The Company has completed work on the fit-out of Intellicentre 3 East data centre development and has commenced billing of its hyperscale customer.
• Net profit after taxof $8.5 million, reflecting the increase in depreciation & amortisation flowing from the significantly higher levels of capital expenditure since FY20.
• Capital expenditure for FY22 was $98.5 million (FY21: $139.1 million) driven by Growth Capex of $64.5 million primarily relating to fit out of IC3 East in Macquarie Park. Customer related Capex was $24.5 million. Maintenance Capex was $9.5 million.
...... down 11% to under $64; priced to perfection? Also, no dividends, Interim nor Final!
• Eight consecutive years of EBITDA growth.
• Full year revenue of $309.3 million, an increase of 8.5% compared to $285.1 million for FY21.
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $88.4 million, an increase of 19.8% from prior year, at the top end of June’s guidance.
• Conversion of EBITDA to operating cash flows generated total operating cash flows of $98.0 million during the year. There is a closing cash balance of $3.0 million and undrawn debt facilities of $64.0 million having drawn down $126.0 million.
• The Company has completed work on the fit-out of Intellicentre 3 East data centre development and has commenced billing of its hyperscale customer.
• Net profit after taxof $8.5 million, reflecting the increase in depreciation & amortisation flowing from the significantly higher levels of capital expenditure since FY20.
• Capital expenditure for FY22 was $98.5 million (FY21: $139.1 million) driven by Growth Capex of $64.5 million primarily relating to fit out of IC3 East in Macquarie Park. Customer related Capex was $24.5 million. Maintenance Capex was $9.5 million.
...... down 11% to under $64; priced to perfection? Also, no dividends, Interim nor Final!
Dona Ferentes
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Listed telco, computing and data centre services provider Macquarie Technology Group is asking big investors for $130 million to help it climb aboard and remain on the AI express.
In the company’s first major capital raising since it listed more than 23 years ago, Macquarie announced the issue on Tuesday at a small 7.6% discount to last Friday’s last sale.
The issue confirms that Macquarie has thrown its lot in with data as its future business rationale.
Macquarie’s Data Centres division accounts for 17% of group revenue, and almost a third of earnings before tax.
The issue will be a non-underwritten institutional placement by Macquarie to help finance its data centre business in the next phase of growth.
The money will be raised at $58.50 per new share, compared to the last traded price of $63.29. Around 2.22 million shares will be issued in the deal.
Trading was halted at Friday’s close of $63.29 and the shares will fall towards the issue price when dealing resumes, probably today.
Management said in Tuesday’s statement that the additional capital will strengthen the company’s balance sheet and provide funding to pursue growth opportunities in its data centre portfolio.
Macquarie currently has five data centres in operation with a pipeline for additional growth led by a new centre on Sydney’s north shore.
The company said the institutional placement is also expected to significantly increase liquidity and free float.
The company explained that it is raising funds in order to increase its exposure new developments in the tech space led by the current cloud computing and the emerging artificial intelligence (AI) booms.
“As our economy becomes more digitised, organisations are moving their data and software applications to the cloud. Clouds live in the latest generation of data centres, like ours.
“Data Centres are digital infrastructure along with our cloud and cyber security platforms. AI is the next significant megatrend for data centres and the digital economy driving higher power density and demand for capacity.
“As these two megatrends combine, we expect to see very strong demand for the latest generation of data centres.”
To help its convince investors to stump up the money, Macquarie reaffirmed its 2022-23 financial year EBITDA guidance of approximately $102 million to $104 million. The data centre business if forecast to account for between $32 million and $34 million.
The company listed nearly 24 years ago as Macquarie Telecom Group and in April of this year changed its name (and focus) Macquarie Technology Group.
...
Macquarie’s fund raising pales, however, compared with the $618 million NextDC sought in early May to finance the expansion of data centres in NZ, Indonesia and here in Sydney.
NEXTDC said last Friday that it had started construction of the KL1 facility in the Malaysian capital, Kuala Lumpur, with a completion date in late 2025.
The KL1 facility represents a three billion ringgit – about $A1 billion – investment by NEXTDC in Malaysia and the region, over the data centre’s five to ten year development
“What’s underpinning our investment in Malaysia is our belief that the use of cloud services in Malaysia is about to boom. It is reinforced by public statements and direct feedback from our major customers, the cloud service providers,” said Dr Alex Teo, NEXTDC’s general manager for Asia and Japan.
The capital to support the move will come from the $618 million raising.
In the company’s first major capital raising since it listed more than 23 years ago, Macquarie announced the issue on Tuesday at a small 7.6% discount to last Friday’s last sale.
The issue confirms that Macquarie has thrown its lot in with data as its future business rationale.
Macquarie’s Data Centres division accounts for 17% of group revenue, and almost a third of earnings before tax.
The issue will be a non-underwritten institutional placement by Macquarie to help finance its data centre business in the next phase of growth.
The money will be raised at $58.50 per new share, compared to the last traded price of $63.29. Around 2.22 million shares will be issued in the deal.
Trading was halted at Friday’s close of $63.29 and the shares will fall towards the issue price when dealing resumes, probably today.
Management said in Tuesday’s statement that the additional capital will strengthen the company’s balance sheet and provide funding to pursue growth opportunities in its data centre portfolio.
Macquarie currently has five data centres in operation with a pipeline for additional growth led by a new centre on Sydney’s north shore.
The company said the institutional placement is also expected to significantly increase liquidity and free float.
The company explained that it is raising funds in order to increase its exposure new developments in the tech space led by the current cloud computing and the emerging artificial intelligence (AI) booms.
“As our economy becomes more digitised, organisations are moving their data and software applications to the cloud. Clouds live in the latest generation of data centres, like ours.
“Data Centres are digital infrastructure along with our cloud and cyber security platforms. AI is the next significant megatrend for data centres and the digital economy driving higher power density and demand for capacity.
“As these two megatrends combine, we expect to see very strong demand for the latest generation of data centres.”
To help its convince investors to stump up the money, Macquarie reaffirmed its 2022-23 financial year EBITDA guidance of approximately $102 million to $104 million. The data centre business if forecast to account for between $32 million and $34 million.
The company listed nearly 24 years ago as Macquarie Telecom Group and in April of this year changed its name (and focus) Macquarie Technology Group.
...
Macquarie’s fund raising pales, however, compared with the $618 million NextDC sought in early May to finance the expansion of data centres in NZ, Indonesia and here in Sydney.
NEXTDC said last Friday that it had started construction of the KL1 facility in the Malaysian capital, Kuala Lumpur, with a completion date in late 2025.
The KL1 facility represents a three billion ringgit – about $A1 billion – investment by NEXTDC in Malaysia and the region, over the data centre’s five to ten year development
“What’s underpinning our investment in Malaysia is our belief that the use of cloud services in Malaysia is about to boom. It is reinforced by public statements and direct feedback from our major customers, the cloud service providers,” said Dr Alex Teo, NEXTDC’s general manager for Asia and Japan.
The capital to support the move will come from the $618 million raising.
Dona Ferentes
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And time to hang up on old connections...
Change of GICS Code to Reflect Evolution of Business
Macquarie Technology Group (ASX: MAQ) today announced that it has received confirmation from S&P Global that the Company will be reclassified into the Global Industry Classification Standard (GICS) “Information Technology” sector under the “Internet Services & Infrastructure” segment of the index.
The company was previously classified as “Diversified Telecom Services” but applied to move into the “Information Technology” sector to reflect the Company’s evolution as a digital infrastructure business through its success in cloud infrastructure, cyber security, data centres, and telecom.
Change of GICS Code to Reflect Evolution of Business
Macquarie Technology Group (ASX: MAQ) today announced that it has received confirmation from S&P Global that the Company will be reclassified into the Global Industry Classification Standard (GICS) “Information Technology” sector under the “Internet Services & Infrastructure” segment of the index.
The company was previously classified as “Diversified Telecom Services” but applied to move into the “Information Technology” sector to reflect the Company’s evolution as a digital infrastructure business through its success in cloud infrastructure, cyber security, data centres, and telecom.
Dona Ferentes
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MAQ reported last night at 7pm, and down 8 per cent today. Evidently, meeting guidance ain't enough. ... and up for big spends.
.
Outlook
• IC3 Super West total IT Load will be increased from 32MW to 38MW, which is a 19% increase. This takes the Macquarie Park Data Centre Campus from 50MW to 56MW.
• Due to demand from the AI megatrend, we could increase IT load of IC3 Super West from 38MW to 45MW. This potential 41% increase from our current plans would take the campus from 56MW to 63MW (subject to regulatory and Board approval). Access to 63MW of power is available upon opening of IC3 Super West.
• Focused on acquiring a campus site in Sydney to enable our ambitious growth plans. Exploring opportunities to accelerate growth to support the AI megatrend.
• The Company’s EBITDA will continue to grow in FY24.
• Due to investments being made in Cloud Services & Government and timing of sales in 2H FY23, EBITDA will be flat 1H FY24 and grow in 2HFY24.
• Non-recurring technical consulting in Government contributed $4 million EBITDA in FY23 and is expected to only have a nominal contribution in FY24. New government policy to use the Public Service rather than consultants.
• We continue to see strong demand for cloud and cyber security services. In FY24 we are increasing our investment in people to position the business to grow our cloud and cyber security business.
• Telecom business has evolved to a managed connectivity and network security business via SDWAN. Telecom maintaining operating efficiencies which will continue to generate current profitability and free cash flow.
• Group wide leveraging of AI internally, and designing infrastructure and services to enable AI for our customers.
• Depreciation and amortisation for FY24 is expected to be $56 to $60 million, driven by full year impact of IC3 in FY24. Hosting depreciation is expected to be $43 to $46 million and Telecom depreciation $13 to $14 million respectively in FY24.
- The Company plans to make further investment in growth and customer growth capex during FY24. Total capex before IC3 Super West is expected to be between $34 to $39 million consisting of:
• Customer Growth - $17 to $19 million.
• Growth Capex - $8 to $10 million.
• Maintenance Capex - $9 to $10 million.
• IC3 Super West capex is expected to be between $45 and $50 million in FY24.
• In FY24 Telecom capex is expected to remain broadly flat at $7 to $8 million, and Hosting capex at $72 to $81 million.
.
Outlook
• IC3 Super West total IT Load will be increased from 32MW to 38MW, which is a 19% increase. This takes the Macquarie Park Data Centre Campus from 50MW to 56MW.
• Due to demand from the AI megatrend, we could increase IT load of IC3 Super West from 38MW to 45MW. This potential 41% increase from our current plans would take the campus from 56MW to 63MW (subject to regulatory and Board approval). Access to 63MW of power is available upon opening of IC3 Super West.
• Focused on acquiring a campus site in Sydney to enable our ambitious growth plans. Exploring opportunities to accelerate growth to support the AI megatrend.
• The Company’s EBITDA will continue to grow in FY24.
• Due to investments being made in Cloud Services & Government and timing of sales in 2H FY23, EBITDA will be flat 1H FY24 and grow in 2HFY24.
• Non-recurring technical consulting in Government contributed $4 million EBITDA in FY23 and is expected to only have a nominal contribution in FY24. New government policy to use the Public Service rather than consultants.
• We continue to see strong demand for cloud and cyber security services. In FY24 we are increasing our investment in people to position the business to grow our cloud and cyber security business.
• Telecom business has evolved to a managed connectivity and network security business via SDWAN. Telecom maintaining operating efficiencies which will continue to generate current profitability and free cash flow.
• Group wide leveraging of AI internally, and designing infrastructure and services to enable AI for our customers.
• Depreciation and amortisation for FY24 is expected to be $56 to $60 million, driven by full year impact of IC3 in FY24. Hosting depreciation is expected to be $43 to $46 million and Telecom depreciation $13 to $14 million respectively in FY24.
- The Company plans to make further investment in growth and customer growth capex during FY24. Total capex before IC3 Super West is expected to be between $34 to $39 million consisting of:
• Customer Growth - $17 to $19 million.
• Growth Capex - $8 to $10 million.
• Maintenance Capex - $9 to $10 million.
• IC3 Super West capex is expected to be between $45 and $50 million in FY24.
• In FY24 Telecom capex is expected to remain broadly flat at $7 to $8 million, and Hosting capex at $72 to $81 million.
Dona Ferentes
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AGM today... pushing higher, close to $69.
.
Outlook
EBITDA will continue to grow in FY24. Due to investments being made in Cloud Services & Government, and timing of sales in the second half of FY23, EBITDA is expected to be flat in the first half of this fiscal year and grow in the second half.
We continue to see strong demand for cloud and cyber security services in our Government and Cloud Services businesses. In FY24 we are increasing our investment in people to position the business to grow further. Macquarie Data Centres is continuing with its development pipeline in Macquarie Park...
Our Telecom business has evolved into a managed connectivity and network security business via SDWAN. It is also focussed on maintaining operational efficiencies to generate current profitability and free cash flow.
When we announce our half year results in February we expect to provide EBITDA guidance for the full year. The timing of our Development Application for IC3 SuperWest is a key focus for the business and is also a key driver our Capex forecast. We will provide a Capex update in February (or earlier should it be required).
.
Outlook
EBITDA will continue to grow in FY24. Due to investments being made in Cloud Services & Government, and timing of sales in the second half of FY23, EBITDA is expected to be flat in the first half of this fiscal year and grow in the second half.
We continue to see strong demand for cloud and cyber security services in our Government and Cloud Services businesses. In FY24 we are increasing our investment in people to position the business to grow further. Macquarie Data Centres is continuing with its development pipeline in Macquarie Park...
Our Telecom business has evolved into a managed connectivity and network security business via SDWAN. It is also focussed on maintaining operational efficiencies to generate current profitability and free cash flow.
When we announce our half year results in February we expect to provide EBITDA guidance for the full year. The timing of our Development Application for IC3 SuperWest is a key focus for the business and is also a key driver our Capex forecast. We will provide a Capex update in February (or earlier should it be required).
Dona Ferentes
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1H out ... up 9 per cent to $78
• Eighteen consecutive halves of profitable growth.
• Revenue of $181.3 million, an increase of 5.1% on 1H FY23 ($172.5 million).
• Earnings before interest, tax, depreciation, and amortisation (Group EBITDA) of $53.0 million, an increase of 3% on 1H FY23 ($51.5 million).
• Conversion of EBITDA to operating cash flows generated total operating cash flows of $49.5 million during the half-year.
• Funding of circa $86m available in the form of cash at bank and deposits, an increase since the end of the prior year due to positive operating cash flow.
• Net profit after tax of $14.8 million, an increase of 74% on 1H FY23 ($8.5 million) driven by increased EBITDA, lower interest costs since paying down of the Company’s debt facility in June 2023 and lower depreciation and amortisation.
• Capital expenditure for 1H FY24 was $18.5 million (1H FY23: $33.2 million) driven by Growth Capex of $9.1 million, Customer Related Capex of $6.0 million and Maintenance Capex of $3.4 million.
Chief Executive David Tudehope said, “We are pleased to have secured the IC3 Super West DA. With anticipated demand from the AI megatrend, we could increase the IT load of IC3 Super West from 38MW to 45MW. This would take the campus from 56MW to 63MW (subject to regulatory and Board approval). Access to 63MW of power is available upon opening of IC3 Super West.”
• Eighteen consecutive halves of profitable growth.
• Revenue of $181.3 million, an increase of 5.1% on 1H FY23 ($172.5 million).
• Earnings before interest, tax, depreciation, and amortisation (Group EBITDA) of $53.0 million, an increase of 3% on 1H FY23 ($51.5 million).
• Conversion of EBITDA to operating cash flows generated total operating cash flows of $49.5 million during the half-year.
• Funding of circa $86m available in the form of cash at bank and deposits, an increase since the end of the prior year due to positive operating cash flow.
• Net profit after tax of $14.8 million, an increase of 74% on 1H FY23 ($8.5 million) driven by increased EBITDA, lower interest costs since paying down of the Company’s debt facility in June 2023 and lower depreciation and amortisation.
• Capital expenditure for 1H FY24 was $18.5 million (1H FY23: $33.2 million) driven by Growth Capex of $9.1 million, Customer Related Capex of $6.0 million and Maintenance Capex of $3.4 million.
Chief Executive David Tudehope said, “We are pleased to have secured the IC3 Super West DA. With anticipated demand from the AI megatrend, we could increase the IT load of IC3 Super West from 38MW to 45MW. This would take the campus from 56MW to 63MW (subject to regulatory and Board approval). Access to 63MW of power is available upon opening of IC3 Super West.”
Dona Ferentes
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Dona Ferentes
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. In 1992, David Tudehope and his brother Aidan founded a start-up called Macquarie Telecom to provide better customer experience for disgruntled telco users.
Now known as Macquarie Technology, it is listed on the ASX with a market cap of $1.7 billion and has extended into cybersecurity and cloud services for government and corporate users. But it’s the data centres that are the key driver of its capital investment....
... increasing concerns about cybersecurity mean data “residency” or “sovereignty” – having sensitive data all stored in Australia – is now considered a strategic advantage for many corporates as well as a requirement for many government departments.
The catch, as Tudehope points out, is that almost all AI services today are delivered from the US, the home of US tech companies.
“There’s almost no data residency right now in a lot of AI. All the data you put into the AI function is now stored in the US,” he says. “It’s starting to change in the last little while but right now it’s all in the US.”
This is important, he says, because the laws and the regulatory bodies that apply stem from the jurisdiction in which the data is stored.
“A lot of people would be surprised to find they are caught by foreign laws and foreign regulators when all they did was just join a cloud,” he says. “So where the data resides has significant consequences.”
The fact that every email sent on Gmail can ultimately be read by Google or that personal data stored in, say, India is ultimately subject to India’s rules and regulations may not bother most individual users.
For business users as well as governments, however, it is an increasingly delicate issue given the need to avoid any added security risks.
Tudehope has an obvious interest in data centres being located in Australia. But he says this also represents an opportunity to participate in the entire AI value chain as a critical future industry for the country.
“When you have cloud and AI services in Australia, you bring highly skilled jobs and a whole new level of engagement in the digital economy, not simply just buying services from sales offices or online.. “Now is the exact time for Australia to grow this sector as it is emerging. ChatGPT is a fantastic product but it’s just one of the many AI models out there. There is incredible innovation in niches that are really exciting and you don’t need to be in Palo Alto to embrace that.”
For Tudehope, this doesn’t mean government tech parks or infrastructure but a combination of funding for early stage start-ups and later stage businesses to create momentum and build critical mass.
“Once they are successful, the free market will kick in,” he insists, suggesting the government’s $15 billion National Construction Fund as a potential suitable model.
But that’s precisely the problem for the fund and for the Albanese government, of course. Many sectors want the fund, or other government programs, to provide taxpayer assistance. The critical minerals industry is just the latest crying out for help as its ambitions are buried by low prices. What they all have in common is the argument their industries or even individual businesses require temporary help in exchange for growing the Australian economy long term.
This used to be derided as “picking winners” and it went out of fashion in Australia decades back. It is now trending again...
Now known as Macquarie Technology, it is listed on the ASX with a market cap of $1.7 billion and has extended into cybersecurity and cloud services for government and corporate users. But it’s the data centres that are the key driver of its capital investment....
... increasing concerns about cybersecurity mean data “residency” or “sovereignty” – having sensitive data all stored in Australia – is now considered a strategic advantage for many corporates as well as a requirement for many government departments.
The catch, as Tudehope points out, is that almost all AI services today are delivered from the US, the home of US tech companies.
“There’s almost no data residency right now in a lot of AI. All the data you put into the AI function is now stored in the US,” he says. “It’s starting to change in the last little while but right now it’s all in the US.”
This is important, he says, because the laws and the regulatory bodies that apply stem from the jurisdiction in which the data is stored.
“A lot of people would be surprised to find they are caught by foreign laws and foreign regulators when all they did was just join a cloud,” he says. “So where the data resides has significant consequences.”
The fact that every email sent on Gmail can ultimately be read by Google or that personal data stored in, say, India is ultimately subject to India’s rules and regulations may not bother most individual users.
For business users as well as governments, however, it is an increasingly delicate issue given the need to avoid any added security risks.
Tudehope has an obvious interest in data centres being located in Australia. But he says this also represents an opportunity to participate in the entire AI value chain as a critical future industry for the country.
“When you have cloud and AI services in Australia, you bring highly skilled jobs and a whole new level of engagement in the digital economy, not simply just buying services from sales offices or online.. “Now is the exact time for Australia to grow this sector as it is emerging. ChatGPT is a fantastic product but it’s just one of the many AI models out there. There is incredible innovation in niches that are really exciting and you don’t need to be in Palo Alto to embrace that.”
For Tudehope, this doesn’t mean government tech parks or infrastructure but a combination of funding for early stage start-ups and later stage businesses to create momentum and build critical mass.
“Once they are successful, the free market will kick in,” he insists, suggesting the government’s $15 billion National Construction Fund as a potential suitable model.
But that’s precisely the problem for the fund and for the Albanese government, of course. Many sectors want the fund, or other government programs, to provide taxpayer assistance. The critical minerals industry is just the latest crying out for help as its ambitions are buried by low prices. What they all have in common is the argument their industries or even individual businesses require temporary help in exchange for growing the Australian economy long term.
This used to be derided as “picking winners” and it went out of fashion in Australia decades back. It is now trending again...
Dona Ferentes
A little bit OC⚡DC
- Joined
- 11 January 2016
- Posts
- 15,080
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- 20,440
these data centre thingies are thirsty beasts:
Macquarie Technology Group to raise A$100 million via an underwritten placement to support the Strategic Acquisition of Macquarie Park Data Centre Campus Land and Buildings from Keppel DC REIT
Highlights
• MAQ has entered into a binding agreement to acquire the Intellicentre 2 (IC2) and Intellicentre 3 East (IC3 East) land and buildings at its existing Macquarie Park Data Centre Campus for $174 million from Keppel DC REIT (SGX:AJBU).
• Demand for the next wave of data centre capacity has arrived in Australia and the Acquisition strategically positions the Group to capitalise on the fast-growing cloud and artificial intelligence megatrends.
• The Acquisition provides greater flexibility for the Group’s future capital
management and creates value over the long-term life of the asset and brings our strategy in line with our global peers.
• The purchase price, stamp duty and related transaction costs of $190 million will be funded by a fully underwritten $100 million two-tranche placement and a $90 million data centre loan note.
• Placement price of $72.50 per new share represents a 6.1% discount to the last closing price of $77.21 on Monday, 15th of April 2024 and a 7.4% discount to the 5-day volume weight average price of $78.26.
• MAQ has achieved 10 consecutive years of EBITDA growth and reaffirms FY24 Group EBITDA guidance range of $108 to $111 million.
:
Macquarie Technology Group to raise A$100 million via an underwritten placement to support the Strategic Acquisition of Macquarie Park Data Centre Campus Land and Buildings from Keppel DC REIT
Highlights
• MAQ has entered into a binding agreement to acquire the Intellicentre 2 (IC2) and Intellicentre 3 East (IC3 East) land and buildings at its existing Macquarie Park Data Centre Campus for $174 million from Keppel DC REIT (SGX:AJBU).
• Demand for the next wave of data centre capacity has arrived in Australia and the Acquisition strategically positions the Group to capitalise on the fast-growing cloud and artificial intelligence megatrends.
• The Acquisition provides greater flexibility for the Group’s future capital
management and creates value over the long-term life of the asset and brings our strategy in line with our global peers.
• The purchase price, stamp duty and related transaction costs of $190 million will be funded by a fully underwritten $100 million two-tranche placement and a $90 million data centre loan note.
• Placement price of $72.50 per new share represents a 6.1% discount to the last closing price of $77.21 on Monday, 15th of April 2024 and a 7.4% discount to the 5-day volume weight average price of $78.26.
• MAQ has achieved 10 consecutive years of EBITDA growth and reaffirms FY24 Group EBITDA guidance range of $108 to $111 million.
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- Joined
- 20 July 2021
- Posts
- 10,972
- Reactions
- 15,238
yes , i had the opportunity to work in the Macquarie Park Data Centre Campus ( while already a holder ) and took a calmly considered exit ( and profit )
yes the share price has risen since , but have no regrets on hitting the exit button