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Telstra invests in new data centre business arm

Eyeing up to nine facilities across Australia, the company jumps on Down Under’s colocation race that is growing at a CAGR of 4.5% until 2026.

By João Marques Lima

Founder and Editor, The Tech Capital

3 Mins

July 28, 2021 | 11:17 AM BST

Telstra invests in new data centre business arm

Rachel Johnson-Kelly, executive, exchanges and infrastructure at Telstra InfraCo

Australian telecommunications operator Telstra (ASX: TLS) has launched Telstra InfraCo Data Centres to provide “greater flexibility for customers working with other carriers for their connectivity”.

The company has opened one facility in Sydney and one in Melbourne, which combined cover 129,000 sq ft of technical space, each with 10MW of power capacity and a PUE of 1.61. Telstra added that it could roll out seven other centres based on uptake.

Rachel Johnson-Kelly, executive, exchanges and infrastructure at Telstra InfraCo, said: “Telstra InfraCo has now launched our Data Centre CoLo product and made available for the first time two data centres in Sydney and Melbourne that are carrier-neutral, providing greater flexibility for customers working with other carriers for their connectivity.

“Our Data Centres provide highly secure, reliable, and flexible environments for network operators and service providers to connect out to their business locations, facilities and other data centre operators. This product is initially available through our Telstra Wholesale channel.”


Telstra InfraCo’s digital infrastructure footprint across Australia. Source: Telstra Wholesale

On its website, Telstra Wholesale, the unit responsible for keeping up the telco’s hosting infrastructure, explains that prior to now, the InfraCo Data Centres have existed primarily to host Telstra’s own networks’ data equipment requirements and “therefore already have access to many of Telstra’s existing connectivity options and networks” making it easy for customers to connect out to their business locations, facilities and other data centre operators.

The sites, as well as the whole of Telstra’s infrastructure assets, are part of the company’s overall sustainability achievements and plans to become carbon neutral, with the further ambition to enable 100% renewable energy generation equivalent to our own consumption by 2025.

Telstra sold 49% of its InfraCo Towers business just last month to the Future Fund, Commonwealth Superannuation Corporation and Sunsuper in a deal worth AU$2.8 billion. The Towers business is the largest mobile tower infrastructure provider in Australia with approximately 8,200 towers.

The transaction values Telstra InfraCo Towers at $5.9 billion, representing an FY21 pro forma EV/EBITDA multiple of 28x. Completion of the transaction is expected in the first quarter of FY22. Telstra intends to return approximately 50 per cent of net proceeds to shareholders in FY22.

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João Marques Lima

Founder and Editor, The Tech Capital

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