Goodman Group Invests $4B in AI-Driven Data Centre Expansion

Goodman Group is accelerating its transition from logistics to technology infrastructure with a $4.1 billion fund focused on developing data centres in Hong Kong

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Pick & Scroll News
July 06, 2025

Goodman Group is accelerating its transition from logistics to technology infrastructure with a $4.1 billion fund focused on developing data centres in Hong Kong. This major move is designed to support the growing demand from artificial intelligence, though rising costs and limited construction resources may slow progress.


Long known for its global logistics and warehouse portfolio, Goodman has emerged as a leading player in the rise of AI and cloud computing. Building on this momentum, the company is increasing its investment in data centres. The new fund includes six sites in Hong Kong, with additional markets under consideration. This strategy follows the company’s proven approach of attracting institutional investors to fund large-scale property developments.


Developing data centres is neither quick nor inexpensive. Costs for each facility now average around $1 billion due to higher material prices and the demand for more advanced infrastructure. Goodman is repurposing its existing industrial properties into high-performance data sites and focusing on long-term partnerships rather than pursuing quick returns or cyclical trends.


While this strategic shift could give Goodman a competitive advantage, challenges remain. Some global competitors are stepping back as valuations in the AI sector become uncertain and large tech companies slow their rollout of new facilities. Despite this, Goodman remains committed to a long-term strategy based on sustained delivery instead of chasing short-term market opportunities. The company already controls about one third of Hong Kong’s data centre market by power capacity.


The Goodman Hong Kong Data Centre Partnership is backed by major investors including pension funds and sovereign wealth funds. It follows the launch of a similar initiative in Japan last year. Together, these efforts reflect the company’s broader goal of building critical infrastructure that supports Asia’s expanding digital economy. Goodman is starting in markets where demand is strongest and competition is still limited.