1. Background: Telstra’s Cloud & Data Centre Strategy

Telstra, Australia’s leading telco and technology provider, has been steadily transforming its infrastructure to support increased cloud adoption, high-performance computing, and AI workloads. While Telstra’s cloud services extend across public, private, and hybrid solutions (including offerings through Telstra Purple and cloud connectors), a key focus has been enhancing its physical data centre footprint and connectivity to support those services across 3600 exchanges across Australia. This transition is being managed by Telstra InfraCo and in particular Telstra’s Chief Infrastructure Officer Mr Ross Lambi and his Infrastructure and Property team now led by Telstra InfraCo CEO Steven Worrall. Telstra’s InfraCo (the digital infrastructure arm) manages carrier-neutral data centres across major Australian cities, engineered for high-density processing, advanced cooling (including liquid cooling for AI), and cloud on-ramps for direct connectivity to leading public cloud vendors. These facilities are designed to support enterprise cloud workloads, hybrid environments, and emerging technology adoption and to strategically place Telstra at the centre of edge computing in the southern hemisphere.

Major Upgrade: New 62 MW AI-Optimized Data Centre across Australia

One of the most significant recent developments is a strategic agreement between Telstra InfraCo, Starwood Capital Group, and Doma Infrastructure Group to develop a series of major new data centres at in various locations as trials. At present Minchinbury, Western Sydney has been “the first cab off the rank” said Ross Lambi signalling more to come. Since the success of this agreement Telstra Plans to make a staged roll out of upgrades to its 3600 exchanges to optimise data centres across Australia.

Key Features of the Upgrade

• 62 MW IT capacity: A substantial amount of power to support demanding workloads, including AI-native clusters and GPU-intensive computing.

• Carrier-neutral facility: Designed to allow multiple operators, hyperscalers, and third-party customers to co-locate and connect.

• Tier III+ Engineering: Built to high reliability standards (redundant components and systems) for mission-critical operations.

• AI-ready design: Support for features like liquid cooling and infrastructure optimized for high-density AI racks.

• Connectivity integration: Telstra InfraCo contributes the land and extends its connectivity — including access to major backbone routes such as the Aura network — enabling low-latency, high-bandwidth connections.

• Timeline: Development approval secured; planning is expected to begin in early 2026, with Ready for Service (RFS) targeted for early Q1 2028 – Q4 2030 and no later said CEO Vicki Brady.

• Staffing: Telstra anticipates a surge in FTEs, contractors, and offshore staffing to encompass 5000 extra head count with the split yet to be determined beginning in the 2026 planning.

Telstra Minchinbury trial is a template for forthcoming Tier III carrier-neutral data centre located in Minchinbury, Western Sydney, Australia. This development is a strategic partnership between Starwood Capital Group, Doma Infrastructure Group, and Telstra InfraCo is the first next generation data centre according to Ross Lambi the Chief Infrastructure of InfraCo. The facility is designed to provide 62MW of IT capacity. Development approval for the site has been secured, with construction slated to commence in early 2026. The target Ready for Service (RFS) date is early Q1 2028. Starwood Capital and Doma are managing the financing, development, construction, and ongoing operations, while Telstra InfraCo will provide the land and extend its connectivity infrastructure. This project aims to address the surging demand for hyperscale and AI infrastructure in the region, supporting next-generation workloads and emerging technologies.