SHAPE Australia (ASX: SHA) Wins $800 Million Sydney Data Centre Contract

SHAPE Australia Corporation has secured an approximately $800 million contract from DigiCo Infrastructure REIT for a major expansion of the SYD1 data centre campus in Sydney.

The award will lift SHAPE’s work in hand to more than $1.4 billion and is expected to make a material contribution to revenue across FY27 and FY28. Work is scheduled to begin immediately.

SHAPE will serve as head contractor under a fixed-price, lump-sum design and construct agreement covering 52 megawatts of additional capacity. Combined with SYD1’s existing 16 megawatts and a recently completed 20-megawatt Stage 1 upgrade, the project will increase the campus’s total capacity to 88 megawatts.

For shareholders, the contract adds a large volume of secured work across two financial years while expanding SHAPE’s exposure to data centre construction beyond the fitout and refurbishment services for which it is established.

Repeat work at SYD1

The contract follows SHAPE’s delivery of the 20-megawatt first-stage upgrade at the same campus. The company said that earlier project supported its selection for the next phase.

SHAPE and DigiCo developed the expansion’s scope, design, construction program and price through an early contractor involvement process before the formal award. That preparatory work is particularly relevant given the size and fixed-price structure of the contract.

Chief executive Peter Marix-Evans said: “Securing this contract is a strong endorsement of the quality and reliability we demonstrated through Stage 1 at SYD1. Being engaged early through an ECI process allowed our team to work collaboratively with DigiCo to scope, design and price this next phase with precision and confidence ahead of the formal award.”

Existing asset shortens the development path

The project involves the adaptive reuse of an existing data centre asset rather than construction of a greenfield facility. According to SHAPE, the site already has approved grid capacity, water access and State Significant Development Approval.

The contract is strategically important because it broadens the construction group’s project mix. SHAPE operates nationally across interior fitout, new-build and modular construction, serving sectors including offices, defence, education, health, hotels, retail and data centres.

Management has identified data centres as a strategic growth sector. The SYD1 expansion gives the company a substantially larger role in that market while deepening its relationship with DigiCo through repeat work at the same asset.

The immediate financial consequence is a step-up in SHAPE’s contracted workload to more than $1.4 billion. The company did not provide a breakdown of the expected revenue contribution between FY27 and FY28, or disclose the contract’s anticipated margin.