Datacom increased revenue to $1.58 billion while continuing to invest in infrastructure, AI capability and long-term growth.
Digital resilience, sovereign infrastructure and local control are becoming increasingly important priorities for organisations across Australia and New Zealand.
Datacom is helping customers navigate AI adoption, supply chain volatility and evolving technology requirements through investment, engineering expertise and flexible infrastructure foundations.
Datacom Group has announced its financial results for the year ended 31 March 2026 (FY26). Group revenue was $1.58 billion, up from $1.48 billion the prior year (FY25), net profit after tax was $20 million, down from $37 million in FY25, while Group EBITDA was $133 million, compared to $147 million the prior year. Full-year operating cash flow was $75 million, down from $164 million the year prior.
Strategic capital investment increased during FY26, including significant infrastructure upgrades and the acquisition of T4's East Auckland data centre to support AI-ready, high-density workloads.
Datacom Group CEO Greg Davidson said that while global uncertainty has tempered customer spend in parts of the market, Datacom has prioritised resilience and long‑term value.
“Heading into the year, we knew conditions would be challenging. We’ve navigated supply chain constraints and cost volatility while making deliberate investments that strengthen the foundations our customers depend on. Those decisions affect short‑term profit, but they are the right choices for resilience and future growth.”
With global hardware supply remaining tight as AI‑driven demand and geopolitical tension reshape availability and pricing, Davidson says Datacom has implemented a range of actions to maintain delivery certainty and help business and government customer avoid disruption to operations.
Actions to manage supply chain disruption and pricing pressures for customers include real-time monitoring of markets, consolidating buying power across our New Zealand and Australia business, pre-purchasing and warehousing stock to lock in pricing, and developing flexible configurations and solutions to avoid component bottlenecks.
“Supply conditions remain highly volatile. Our job is continuity: secure allocation early, design for options and keep customers moving despite volatility.”
Davidson said the current geopolitical environment underscored the importance of strong, sovereign digital foundations across Australia and New Zealand.
“The need to build in-country capability and ensure our local organisations are digitally resilient is a conversation we are having with many customers across Australia and New Zealand. Relying solely on global providers and offshore data storage creates dependencies you don’t control. If a cable is cut, a region goes offline or borders tighten, how will you keep essential services running? Do your critical systems have onshore backup and recovery, and can you fail over locally without waiting on a global fix? That’s what resilience looks like.”
This year Datacom expanded its New Zealand data centre footprint to five, announcing the acquisition of T4’s Auckland facility in Highbrook. The site is being upgraded for AI‑ready, high‑density compute and energy‑efficient operations. This investment strengthens in‑country capability and data residency while maintaining connectivity to global platforms.
“Sovereign infrastructure gives organisations certainty over where their data lives, how it’s governed, and how reliably it can be accessed. We’re building the local foundations customers need – with the ability to connect to global platforms where it adds value,” said Davidson.
With AI adoption continuing at pace, a focus for Datacom over the past 12 months has been helping customers to modernise legacy systems to ensure dated systems are not becoming the stumbling block for AI projects. We have also provided guidance on the importance of flexible, hybrid cloud platforms to manage cost, ensure portability and create secure, sovereign data foundations.
“Resilience is practical: portability over lock‑in, continuity over single‑vendor risk and clear sight of cost drivers as AI scales,” said Davidson.
Across New Zealand and Australia, Datacom has delivered AI projects that have resulted in improved citizen and customer outcomes, reduced operational friction and unlocked greater data and insights.
Projects the team worked on ranged from implementing AI-driven search functionality to make it easier to find financial regulation guidance on the New Zealand Financial Markets Authority website; building an AI simulator to model weather, livestock growth and feed costs for a leading food production company; to building enterprise AI agents to reduce cost-to-serve by eliminating unnecessary manual quality checks for a large organisation servicing citizens.
While market conditions remain mixed and supply pressures are likely to persist, Davidson said Datacom will continue to invest in infrastructure and in‑country capability to support customers’ cost, resilience, sovereignty, compliance and latency needs.
“In the year ahead, we’ll continue to deepen our commitment to investing in data centre infrastructure and work closely with hardware and hyperscale partners to ensure customers have the traditional and GPU capacity they need. Our focus is straightforward: build the right foundations, use our engineering expertise to accelerate value, and help our customers implement technology solutions that provide growth and resilience for their operations.”
