Data centre and cloud computing businesses have been taking off over the past year as the AI revolution takes hold.
There are several Australian businesses positioning themselves to benefit from AI growth, some of which have already enjoyed impressive share price gains.
The brokers at UBS have released reports this week on companies they like in the sector.
Let's see what they're saying.
Image source: Getty Images
Goodman Group (ASX: GMG)
This company last week reported an operating profit of $2.67 billion for FY26, up 15.7% on the previous year, and said it was targeting earnings growth of 9% in the current financial year.
The company said:
The result reflects continued demand for Goodman's urban locations and the growing contribution from data centre developments, where secured power, scarce land and customer and investment partner engagement are supporting a significant development pipeline.
Chief Executive Officer Greg Goodman said the strong operating result positioned the company well as a global provider of digital infrastructure.
He added:
Goodman has been active in data centres since 2005 and over the past five years, we've deliberately deepened our exposure to the sector by securing the sites, power and capital needed in major metro markets. Demand is structural across both logistics and data centres. Automation and robotics continue to drive logistics requirements while scarcity of power and land remains the key constraint on AI and cloud growth supporting data centre demand. Hyperscaler capex expectations continue to rise, with many customers facing undersupply into 2027 and 2028.
UBS said demand remained "incredibly strong", with the company having a "compelling" offering.
UBS has a buy rating on the stock and a price target of $33.66 compared to $27.43 currently.
Megaport Ltd (ASX: MP1)
This cloud computing company last week announced FY26 revenue of $312.2 million, up 37%, while EBITDA was up 24% to $77.1 million.
Megaport Chief Executive Officer Michael Reid said:
Our team delivered an exceptional result in FY26. The Network business produced its strongest commercial performance to date, Latitude.sh expanded rapidly following acquisition, and our combined capabilities secured major long-term customer contracts across Compute, Network, and Storage. We have materially increased the scale of the business, broadened the markets we can serve, and created a much larger opportunity. Now our job is to execute against it.
UBS said the net outcome of the results report was "firmly in the positive" and estimated EBITDA of $624 million for Megaport in FY28.
The broker has a price target of $26.40 on Megaport shares, up from $24.20, compared to the current share price of $18.19.
