Macquarie Data Centres has exercised an option to acquire a 34,200-square-metre development site in Sydney’s Macquarie Park for A$240 million (US$168 million), the company said on Thursday.

The site, located between Talavera Road and the M2 motorway, is zoned for light industrial use. The company plans to develop an engineering and technology campus alongside a data centre campus with around 200MW of IT capacity in Sydney’s North Zone, also known as Availability Zone 1.

Completion of the acquisition remains subject to standard settlement procedures and is expected within the coming weeks.

The project will require planning, power, and other regulatory approvals. Its final design will also depend on customer requirements.

Macquarie Data Centres said the proposed facility would use closed-loop air-cooling technology to reduce operational water consumption. It is also being designed to support high-density air cooling and direct-to-chip liquid cooling within its data halls.

Initial construction is targeted for completion in late 2029.

The campus will support research and skills development through Macquarie Technology Group’s partnership with Macquarie University. Students and researchers are expected to gain practical access to the data centre, cybersecurity, AI and cloud technologies.

As the project remains in the design stage, Macquarie Data Centres said existing and prospective customers may be able to contribute to its technical specifications.

Macquarie Data Centres has operated in Macquarie Park for 16 years. Its facilities are certified as strategic assets by the Australian federal government.

The proposed development also includes a public park of more than one acre, subject to approval. Plans include recreational areas, a community garden for City of Ryde residents, and an outdoor gallery featuring work by local artists and Macquarie University students and faculty.

The gallery would also include displays on the area’s history and connection to Country.

“Alongside the 200MW of Australian-owned and operated data centre that this will deliver to Sydney’s north zone, the proposed campus will also deliver lasting benefit to the local community,” said Macquarie Data Centres’ CEO, David Hirst.

The partnership with Macquarie University would give students and researchers practical access to the data centre, cybersecurity, and cloud technologies.  Hirst added that the project would include a community park of more than one acre for City of Ryde residents.