Datasection’s Sydney AI data centre at DigiCo’s SYD1 site expected to land Japanese neocloud company $400 million revenue
Australian Financial Review
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Details
- Date Published
- 20 May 2026
- Priority Score
- 2
- Australian
- Yes
- Created
- 20 May 2026, 06:00 am
Description
The cloud computing company expects to make hundreds of millions in revenue from running more than 1000 AI servers in DigiCo’s SYD1 data centre from July.
Summary
This article details a significant investment in Australia's physical AI infrastructure through a partnership between Japan's Datasection and DigiCo Infrastructure REIT. The project involves deploying over 1000 AI servers in Sydney, signaling a rapid expansion of compute availability within the region. While primarily focused on commercial and economic outcomes, the project underscores the speed at which frontier AI hardware is being localized. Access to such concentrated compute capacity is a prerequisite for both advanced AI development and the associated safety oversight challenges required in Australian AI governance.
Body
CompaniesInfrastructureData centresPrint articleJenny WigginsSenior reporterMay 20, 2026 – 9.00amJapanese artificial intelligence services company Datasection says it expects to generate more than $400 million in revenue within a year when it starts operating in DigiCo’s SYD1 data centre in July.Datasection struck a deal with DigiCo Infrastructure REIT – the ASX-listed data centre developer backed by veteran deal maker David Di Pilla – in October to set up an AI data centre in Sydney.Loading...SaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreData centresElectricityRenewablesDavid Di PillaAIFetching latest articles