Australian Macquarie Data Centres, an arm of Macquarie Telecom Group has broken ground for its third data center in Sydney, Australia.

Known as Intellicentre 3 (IC3) East, the new facility is set to be an expansion of the existing Macquarie Park Data Center Campus, which is sited in the Macquarie Park Innovation District within the Sydney North Zone.

The development of IC3 East will cost the company about 80 million AUD (approx. 55 million USD). The data center is expected to offer up to 16MW of power capacity which is higher than the campus’s total capacity, currently at 10MW.

According to the company, IC3 is designed for hyperscale customers, software-as-a-service (SaaS) providers and global enterprises. Macquarie DC cited figures from IDC, an Analytics firm, showing that public cloud services in Australia are expanding by over 30 percent to 4 billion AUD (approx. 2.75 billion USD) in 2018, with SaaS representing two-thirds of expenditure.

“This facility will leverage our experience, industry-leading customer service and security credentials – which are already trusted by 42 per cent of Australian Federal Government agencies,” said David Hirst, group executive of Macquarie DC.

“Sovereignty, cyber security and compliance standards are more vital than ever to protect the data and infrastructure of businesses in Australia. Our 18-year data center experience and security posture make IC3 an ideal inroad for US and other multinational companies to enter the thriving Australian market.”

IC3 East was first announced last year. According to an update filed with the Australian Securities Exchange (ASX) in June, the lag between the announcement and ground-breaking event was due to a delay in planning and approval.

This new data center is expected to be opened in the second half of 2020.

The company is already planning another data center, IC3 West, which will be developed as part of a Phase 2 expansion and will add 17MW, bringing the total campus power capacity to 43MW.