The Australia Data Center Market Size, Share, Trends, & Investments By IT Infrastructure, By Electrical Infrastructure, By Mechanical Infrastructure, By Cooling Systems, By General Construction, & By Tier Standard. This Industry Analysis Covers The Market

Australia Data Center Market - Investment Analysis & Growth Opportunities 2026-2031

AUSTRALIA DATA CENTER MARKET SIZE

The Australia data center market size was valued at USD 4.22 billion in 2025 and is expected to reach USD 9.02 billion by 2031, growing at a CAGR of 13.52% during the forecast period. Australia has firmly positioned itself as one of the leading data center markets in the Asia–Pacific region. Its strong digital infrastructure, a mature technology ecosystem, and a well-developed operational framework have made it one of the most advanced and attractive data center hubs in the region, drawing both domestic and international operators.

Australia has set a national target to achieve net-zero greenhouse gas emissions by 2050 and is therefore increasing its focus on renewable energy generation. The country aims to source over 82% of its electricity from renewables by 2030, with an interim target of around 48% renewable electricity generation by 2025.

Currently, Australia has 21 active submarine cable systems, with another eight expected to be commissioned between 2026 and 2028. These next-generation cables support high-speed data transmission, lower latency, and address the rising demand for broadband and cloud-based services, which are essential to the country’s growing digital economy. Most cable landings are concentrated in Northern Sydney, Southern Sydney, and Perth, while additional landing points are located at the Sunshine Coast and Darwin. Sydney accounts for around 12 landing cables, Perth five, and the Sunshine Coast one, with a landing point in Darwin expected to become operational by 2027. For instance, in November 2025, Google announced TalayLink, a new subsea cable system connecting Australia and Thailand, with landing points planned around Melbourne, Perth, Christmas Island, and southern Thailand. The project aims to strengthen network reach and resilience across the APAC region and includes new connectivity hubs in Mandurah, Western Australia, and southern Thailand.

The cloud market in Australia is expected to continue experiencing significant growth in the future. For instance, in September 2025, the Department of Foreign Affairs and Trade launched a multi-year cloud migration project as part of its $69.86 million digital transformation program. The initiative focuses on moving legacy systems to the cloud and modernizing IT infrastructure, while continuing its transition away from older data center providers.

AUSTRALIA DATA CENTER MARKET - KEY HIGHLIGHTS

1. Australia has about 145 operational colocation data centers. Most colocation data centers are being developed according to Tier III standards.
2. In terms of colocation services, the wholesale and hyperscale segment is expected to be a major contributor to revenue growth in the coming years, supported by the increasing demand from cloud and large enterprise customers.
3. Over the next two to three years, Australia is expected to witness substantial investments in its data center sector, driven by the entry of several new operators in the market. The total investment in this industry is projected to exceed $9.02 billion by 2031. This surge reflects Australia’s rapidly expanding digital economy, supported by the growing adoption of cloud-based services and the government initiatives aimed at strengthening the city’s digital infrastructure.
4. In November 2025, AI cloud company, Firmus, raised $327 million to support its “Project Southgate” expansion across Tasmania, Melbourne, Sydney, Canberra, and Perth. The company plans to scale its capacity to 1.6GW by 2028, with a focus on AI and immersion-cooled infrastructure.
5. Mergers and acquisitions and joint ventures are among the two major investment activities followed by organizations to boost their presence and market share in the market. Several such activities were witnessed in the market. For instance, in March 2025, Partners Group acquired a majority stake in GreenSquareDC and announced expansion into Sydney.
6. As of Q4 2025, the average industrial electricity price in Australia ranges between USD 0.2 and 0.4 per kWh, applicable to industries including data centers.
7. In November 2025, Stack Infrastructure completed the construction of its MEL01B data center in Melbourne, adding 36MW to the existing MEL01 campus, which will ultimately deliver 180MW across four buildings. The company is also expanding its national power footprint through additional large-scale developments, including a planned 360MW campus in Sydney and multi-megawatt facilities in Canberra and Perth.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size available in the investment, area, power capacity, and Australia colocation market revenue.
2. An assessment of the data center investment in Australia by colocation, hyperscale, and enterprise operators.
3. Data center investments in the area (square feet) and power capacity (MW) across cities in the country.
4. A detailed study of the existing Australia data center market landscape, an in-depth industry analysis, and insightful predictions about the Australian data center market size during the forecast period.
5. Snapshot of existing and upcoming third-party data center facilities in Australia
6. Facilities Covered (Existing): 145
7. Facilities Identified (Upcoming): 55
8. Coverage: 18+ Cities
9. Existing vs. Upcoming (Data Center Area)
10. Existing vs. Upcoming (IT Load Capacity)
11. Data center colocation market in Australia
12. Colocation Market Revenue & Forecast (2022-2031)
13. Retail & Wholesale Colocation Revenue (2022-2031)
14. Retail & Wholesale Colocation Pricing
15. Australia data center landscape market investments are classified into IT, power, cooling, and general construction services, with sizing and forecast.
16. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
17. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
18. A transparent research methodology and the analysis of the demand and supply aspects of the market.

AUSTRALIA DATA CENTER MARKET VENDOR LANDSCAPE

1. IT infrastructure providers play a critical role in supporting Australia’s high-density and cloud-driven data center ecosystem, supplying servers, storage, networking, and AI-optimized hardware.
2. Engineering firms focus on modular construction, prefabrication, and accelerated build timelines to meet tight capacity rollout schedules. Collaboration between contractors, consultants, and government authorities ensures compliance with planning, environmental, and power allocation regulations.
3. Leading Support infrastructure providers such as ABB, Caterpillar, Cummins, Eaton, Mitsubishi Electric, Rolls-Royce, Vertiv and others maintain a strong presence through local service teams, long-term maintenance contracts, and regional manufacturing hubs.
4. Australia’s data center market features major global and regional operators, including AirTrunk, DCI Data Centers, Equinix, Digital Realty, Global Switch, Keppel Data Centres, Macquarie Data Centres, and NEXTDC; furthermore, it includes newer players such as Doma Infrastructure Group, Goodman, GreenSquareDC, Supernode, Trifalga, Vantage Data Centers, EdgeConneX, and ISPT.
5. The market has also witnessed several new entrants, developing data center facilities across Australia. For instance, in November 2025, Goodman Group’s development pipeline reached $11.30 billion, with data centers making up around 75% of its work-in-progress portfolio by 2026. The company plans to expand its data center capacity from 300MW to 500MW in 2026.

EXISTING VS. UPCOMING DATA CENTERS

1. Existing Facilities in the region (Area and Power Capacity)
2. Sydney
3. Melbourne
4. Other Cities
5. List of Upcoming Facilities in the region (Area and Power Capacity)
6. Sydney
7. Melbourne
8. Other Cities

REPORT COVERAGE:

This report analyses the Australia data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, cooling systems, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

1. IT Infrastructure
2. Server Infrastructure
3. Storage Infrastructure
4. Network Infrastructure
5. Electrical Infrastructure
6. UPS Systems
7. Generators
8. Switches & Switchgears
9. PDUs
10. Other Electrical Infrastructure
11. Mechanical Infrastructure
12. Cooling Systems
13. Rack Cabinets
14. Other Mechanical Infrastructure
15. Cooling Systems
16. CRAC and CRAH
17. Chillers
18. Cooling Towers, Condensers and Dry Coolers
19. Other Cooling Units
20. General Construction
21. Core & Shell Development
22. Installation & commissioning Services
23. Building & Engineering Design
24. Fire Detection & Suppression Systems
25. Physical Security
26. Data Center Infrastructure Management (DCIM)
27. Tier Standard
28. Tier I & Tier II
29. Tier III
30. Tier IV
31. Geography
32. Sydney
33. Melbourne
34. Other Cities

VENDOR LANDSCAPE

1. IT INFRASTRUCTURE PROVIDERS: Arista Networks, Atos, Broadcom, Cisco, Dell Technologies, Extreme Networks, Hewlett Packard Enterprise, Hitachi Vantara, IBM, Lenovo, Oracle, Pure Storage, Quanta Cloud Technology, and Supermicro.
2. DATA CENTER CONSTRUCTION CONTRACTORS & SUB-CONTRACTORS: AECOM, Apollo, A W Edwards, Aurecon, Benmax, BESIX Watpac, BGIS, Cundall, DEM, Erilyan, FDC Construction & Fitout, FKG Group, Greenbox Architecture, Green Civil, HDR, Hindmarsh, Hutchinson Builders, Icon Construction, ISG, John Holland, Kapitol Group, Linesight, Manteena Group, Mecone, Nilsen, Paramount Airconditioning, Parratech, SCEE Group, Stowe Australia, Taylor Construction, TTW, and WT.
3. SUPPORT INFRASTRUCTURE PROVIDERS: ABB, Airedale, Alfa Laval, Bosch, Canovate, Caterpillar, Condair Group, Cummins, Delta Electronics, Eaton, Everett-Smith, Green Revolution Cooling, HITEC Power Protection, Kohler Power, Legrand, Mitsubishi Electric, Piller Power Systems, Rittal, Rolls-Royce, Schneider Electric, STULZ, Thycon, and Vertiv.
4. DATA CENTER INVESTORS: 5G Networks, AirTrunk, Amazon web Services, CDC Data Centres, DC Two, DCI Data Centers, Digico, Digital Realty, Equinix, Edge Centres, Fujitsu, Global Switch, Leading Edge Data Centres, Keppel Data Centres, Macquarie Data Centres, Microsoft, NEXTDC, NTT DATA, STACK Infrastructure, and Stockland.
5. NEW ENTRANTS: Doma Infrastructure Group, Goodman, GreenSquareDC, Supernode, Trifalga, Vantage Data Centers, EdgeConneX, and ISPT.