Macquarie Telecom will invest $15 million in data centre mechanical, plant and equipment to attend to a major new customer, which requires 2.5MW of capacity.
The unnamed customer is said to be a Fortune 100 company and the initial contract is for six years.
The investment will go to Intellicentre 2, one of MacTel's two data centres located in Sydney. The upgrade should take up to 20 months.
According to an official announcement from Macquarie Telecom, the customer is expected to start paying for the services from the third quarter of 2017.
MacTel registered 178 percent profit increase for the half year ending 31 December 2015, reporting $2 million net profit for the period.