Goodman Group projects its development pipeline to reach approximately 18 billion dollars by June 2026, up from 14.5 billion dollars at 31 March 2026. This expansion reflects accelerating demand for data centre and large-scale logistics assets, particularly as artificial intelligence adoption drives computing capacity requirements that have outpaced global supply. The company’s ability to grow its work in progress while maintaining a total portfolio valued at 87.1 billion dollars positions it to capture a disproportionate share of structurally growing infrastructure demand.
Energy availability emerges as the single greatest constraint to delivering the infrastructure required to support this demand. Goodman’s 6.4 gigawatt power bank reflects the strategic importance of securing reliable power access as data centre operators race to meet rising workloads. The company notes that the scale of investment required globally likely exceeds current capital market funding capacity, creating a widening gap between what customers need and what the industry can deliver. This supply shortage increasingly favours large, well-positioned operators with established power relationships and substantial land platforms.
The composition of Goodman’s development pipeline demonstrates management’s strategic pivot toward higher-return asset classes. Data centres account for 73 percent of current work in progress, a substantial share reflecting the shift in spending toward cloud and artificial intelligence infrastructure. The company has simultaneously repositioned its portfolio toward large-scale industrial assets supporting logistics operations, recognising the structural transformation of supply chains driven by automation and artificial intelligence adoption. These assets offer durable demand and limited replicability, characteristics that increasingly advantage established platform operators.
The sustainability of returns depends on execution and capital discipline. Goodman’s yield on cost of 8.0 percent across its work in progress pipeline demonstrates disciplined project selection, particularly given the rising construction costs referenced in the statement. Notably, 43 percent of work in progress is either pre-sold or being built for third parties and partnerships, which de-risks delivery and ensures customer commitment before project completion. With an annualised production rate of approximately 6 billion dollars, the company maintains visibility over its delivery cadence.
Investors should monitor three factors going forward: the company’s ability to secure adequate power for pipeline projects, realisation of the projected 18 billion dollar work in progress milestone by June 2026, and management’s success in managing construction cost pressures in the current geopolitical environment. This announcement is price sensitive under ASX listing rules and has been designated as material.
View the full ASX announcement (PDF)
About Goodman Group (ASX: GMG)
Goodman Group is a global industrial property group that owns, develops, and manages logistics and warehouse facilities. It has a significant presence in key markets across Australia, Asia, Europe, and the Americas.
If you would like to discuss this announcement or how it might affect your portfolio, request a callback or call us on 1300 889 603.
