Australia Data Center Market - Investment Analysis & Growth Opportunities 2025-2030

AUSTRALIA DATA CENTER MARKET SIZE & OUTLOOK

The Australia data center market size will witness investments of USD 8.58 billion by 2030, growing at a CAGR of 3.93% during the forecast period.

Australia has emerged as a dominant force in the data center market within Asia-Pacific (APAC). In 2024, the country made a significant contribution by accounting for approximately 8.8% of the total data center investment across APAC, positioning it as the second-largest market in the region, following China. Furthermore, the Australian government offers several tax and financial incentives to support the growth and sustainability of the Australia data center market, particularly emphasizing energy efficiency and environmental responsibility. For instance, the National Australian Built Environment Rating System (NABERS) offers a data center starters program that provides financial contributions of up to AUD 8,000 (excluding GST) to data center owners.

Australia currently has about 21 existing submarine cables, with 8 upcoming cables. Asia Connect Cable-1 (ACC-1) would be a prominent cable that connects Australia with many countries such as the US, Indonesia, Singapore, Guam, and the Philippines. Furthermore, according to Turner & Townsend’s Data Center Cost Index for 2024, the construction cost of data centers in Sydney was between $10-$11 per watt, and in Melbourne is $9.5-$10.0 per watt. The costs were expected to rise year over year due to supply chain issues, inflation, and interest rates.

KEY HIGHLIGHTS

1. The number of third-party data center facilities in the Australia data center market is gradually growing, with a good start. Australia is an established market in the APAC region and has around 143 existing colocation data centers spread across the country, with most of them being in Sydney and Melbourne.
2. Australia is recognized for its advanced infrastructure and robust technological ecosystem, which establish it as a powerhouse and one of the most developed data center hubs in APAC. The country has a well-established framework that supports the growth and efficiency of data center operations, attracting numerous international and local operators.
3. Sydney and Melbourne are particularly favored by these operators due to their strategic geographic locations, access to reliable power sources, and a strong talent pool. This preference further reinforces Australia's position as a key player in the global data center landscape and highlights its potential for continued growth and investment.

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 (thousand square feet) and power capacity (MW) across cities in the country.
4. A detailed study of the existing Australian data center industry landscape, an in-depth market analysis, and insightful predictions about the Australia 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): 143
7. Facilities Identified (Upcoming): 32
8. Coverage: 21 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 (2021-2030)
13. Wholesale vs. Retail Colocation Revenue (2021-2030)
14. Retail Colocation Pricing
15. Wholesale Colocation Pricing
16. The Australia data center landscape market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
17. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
18. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the market.
19. A transparent research methodology and analysis of the demand and supply aspects of the market.

AUSTRALIA DATA CENTER MARKET’S VENDOR LANDSCAPE

1. The Australia data center market features all the major global and regional operators. Leading colocation providers in the Australia data center market include AirTrunk, NEXTDC, Canberra Data Centres (CDC), Equinix, Global Switch, DCI Data Centers, Keppel Data Centres, Digital Realty, STACK Infrastructure, and others.
2. Global cloud providers such as Microsoft, Amazon Web Services (AWS), Google Cloud, Oracle Cloud, IBM Cloud, and Alibaba Cloud are establishing and expanding their operations in the Australia data center market. AWS continues to grow its cloud footprint, capitalizing on the expanding digital economy of the country, while Microsoft has expanded its cloud operations in both Sydney and Melbourne.
3. NEXTDC has established many data centers in the Australia data center market and has many facilities in line for setting up in the future. However, the market share is likely to change during the forecast period as other operators are involved in the development of additional data center facilities that are likely to go live during the forecast period.
4. The current market trends are showing a notable increase in investments in self-built data centers by major tech players like Amazon Web Services and Microsoft. These companies are actively expanding their infrastructure to enhance their cloud services, improve data processing capabilities, and ensure greater reliability for their customers.

EXISTING VS. UPCOMING DATA CENTERS IN AUSTRALIA

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, 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. Transfer Switches & Switchgears
9. PDUs
10. Other Electrical Infrastructure
11. Mechanical Infrastructure
12. Cooling Systems
13. Rack
14. Other Mechanical Infrastructure
15. Cooling Systems
16. CRAC and CRAH Units
17. Chillers Units
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 Systems, 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, A W Edwards, Aurecon, Benmax, BGIS, DEM, FDC Construction & Fitout, FKG Group, Greenbox Architecture, HDR, Hutchinson Builders, Icon Construction, ISG, John Holland, Kapitol Group, Linesight, Manteena Group, Nilsen, Paramount Airconditioning, Parratech, SCEE Group, Stowe Australia, and Taylor Construction.
3. Support Infrastructure Providers: ABB, Airedale, Alfa Laval, Canovate, Caterpillar, Condair, 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, Digital Realty, Equinix, Edge Centres, Fujitsu, Global Switch, Leading Edge Data Centres, Keppel Data Centres, Macquarie Data Centres, Microsoft, NEXTDC, STACK Infrastructure, and Stockland.
5. New Entrants: Doma Infrastructure Group, Goodman, GreenSquareDC, Supernode, Trifalga, and Vantage Data Centers.

TARGET AUDIENCE

1. Real Estate Investment Trusts
2. Construction Contractors
3. Infrastructure Providers
4. New Entrants
5. Consultants/Consultancies/Advisory Firms
6. Corporate and Government Agencies