Australian-based global data centre developer Goodman Group is moving ahead with a new AUD 1 billion+ Los Angeles data centre development, as DigiCo Infrastructure REIT has withdrawn plans for a separate project in the same metro, highlighting diverging outcomes in one of the most constrained US markets.
Goodman has partnered with DataBank to deliver a 32MW facility in Vernon, California, targeting demand from hyperscale, AI, and enterprise customers. The site is expected to open in December 2026 with an initial 6MW, scaling to full capacity by September 2027.
The development reflects Goodman’s approach of securing key inputs early. The company acquired the Vernon site in 2023 and has already obtained power, planning approvals, and entitlements, positioning the project at an advanced stage ahead of construction. It forms part of a broader global pipeline supported by a 6GW power bank and more than USD 12 billion in work in progress.
“Power, sites, and capital are critical to being able to build into demand and provide delivery certainty for customers,” said Anthony Rozic, CEO of Goodman North America.
Under the joint venture, Goodman will lead development while DataBank will operate the facility, leveraging its footprint of more than 70 data centres across the US. The partners said they intend to expand the relationship into additional capacity-constrained markets.
“We’re excited to be partnering with Goodman to bring critically needed AI-ready data centre capacity to enterprises in the Los Angeles market,” said Raul Martynek, chairman and CEO of DataBank.
The project comes as Los Angeles continues to face tight supply, driven by limited land availability, grid constraints, and rising demand linked to AI workloads, increasing the importance of delivery certainty for operators and customers.
DigiCo withdraws Monterey Park application
By contrast, Australian DC company DigiCo has pulled its application for a proposed data centre at its LAX1 site in Monterey Park after receiving indications that planning approval was uncertain.
“We have voluntarily withdrawn our application for a data centre project at LAX1,” said Chris Maher, interim CEO of DigiCo Infrastructure REIT. “We will work with the City of Monterey Park Council to establish an alternative use for the combined 33 acres of land, with a view to efficiently recycling the capital invested in both sites.”
The assets remain on DigiCo’s books at a combined value of USD 71 million, with the company stating it remains confident it can realise value from the land.