Australia Data Center Market - Investment Analysis & Growth Opportunities 2024–2029

MARKET OUTLOOK

The Australia data center market size will witness investments of USD 7.71 billion by 2029, growing at a CAGR of 3.22% during the forecast period. Australia is among the APAC region's developed and established data center markets. The country is economically strong and one of the leaders in technology and other latest innovations. Furthermore, the market in Australia accounts for growing investment opportunities as it offers several advantages and perks in terms of financing, land availability, and minimal requirements for setting up new businesses while complying with local laws, attracting many investors from around the world.

Sydney and Melbourne are the top destinations for data center development in the Australia data center market, followed by Canberra, Perth, Brisbane, Adelaide, and others. Further, the availability of land, the increasing demand for cloud computing, and the growing adoption of sustainable measures enable operators to ramp up investments.

The Australia data center market is driven by consistent demand, aided by digitalization initiatives and the expansion of major cloud operators' data center presence, including Microsoft, AWS, Google Cloud, Alibaba Cloud, and Oracle. Also, Australia has pledged to become net carbon neutral by the year 2050, and its short-term goal for 2030 is to reach emission levels of less than 43% of what they were in 2005.

KEY HIGHLIGHTS

• Australia has about 135 operational colocation data centers. Most are being developed according to Tier III standards. For instance, NEXTDC’s data center, M1 in Melbourne, is built according to Uptime Tier III standards.
• The average cost of building a data center in the country ranges between $9 to $10 per watt, an increase of around 4-5% YoY, making it amongst the costliest markets in the APAC region.
• The Australian data center market is also witnessing significant improvements in submarine and inland connectivity. For instance, the Hawaiki Nui is the longest upcoming cable, spanning over 15,500 miles and connecting Australia with the US, Australia, New Zealand, and other countries.
• The Australian government has set a Power Usage Effectiveness (PUE) target rate of about 1.3 or less for the country's data center facilities, adhering to the ESG goals.
• Significant deployment and adoption of 5G services are also progressing in the country, with telecom operators like Telstra, Vocus, and others expanding their network coverage areas. This leads to increased data traffic and bolsters demand for more data centers in the country.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size is available in terms of investment, area, power capacity, and Australia colocation market revenue.
• An assessment of the data center investment in Australia by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across cities in the country.
• A detailed study of the existing Australia data center market landscape, an in-depth market analysis, and insightful predictions about market size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Australia
  • Facilities Covered (Existing): 135
  • Facilities Identified (Upcoming): 23
  • Coverage: 20 Locations
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in the Australia
  • Colocation Market Revenue & Forecast (2023-2029)
  • Retail Colocation Revenue (2023-2029)
  • Retail Colocation Pricing
• The Australia data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the industry.

VENDOR LANDSCAPE

• Some of the key colocation investors in the Australia data center market in 2023 are AirTrunk, Equinix, STACK Infrastructure, NEXTDC, DCI Data Centers, CDC Data Centres, Macquarie Data Centres, and Vantage Data Centers.
• In October 2023, Microsoft, the hyperscale tech giant, announced that they intend to expand their presence in Australia by investing more than USD 3 billion to increase and enhance their computing capacity by over 250% in the next two years. In July 2023, it confirmed plans to construct a new data center facility in Sydney.
• The Australia data center market is home to several major cloud operators, including Google, Microsoft, Amazon Web Services, Oracle, and Alibaba Cloud, each with its own dedicated cloud region.
• Equinix is among the major global operators in the Australia data center market. The company is expanding two facilities in Sydney and Melbourne- SY5 and ME2, respectively. 
• GreenSquareDC is among the new entrants in the Australia data center market, currently developing a new data center campus with two buildings in Perth- WA1.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
  • Sydney
  • Melbourne
  • Perth
  • Other Cities
• List of Upcoming Facilities in the Region (Area and Power Capacity)
  • Sydney
  • Melbourne
  • Perth
  • 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:

• IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Rack Cabinets
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC and CRAH
  • Chillers
  • Cooling Towers, Condensers and Dry Coolers
  • Economizers and Evaporative Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & commissioning Services
  • Building & Engineering Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • DCIM
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV 
• Geography
  • Sydney
  • Melbourne
  • Perth
  • Other Cities

VENDOR LANDSCAPE

• IT Infrastructure Providers: Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, Extreme Networks, Hewlett Packard Enterprise, Hitachi Vintara, IBM, Juniper Networks, Lenovo, Oracle, Pure Storage, Quanta Cloud Technology, and Super Micro Computer.
• Data Center Construction Contractors & Sub-Contractors: AECOM, A W Edwards, Aurecon, Benmax, BGIS, Dem, FDC Construction & Fitout, FKG Group, Greenbox Architecture, HDR (Hurley Palmer Flatt), Hutchinson Builders, Icon, ISG, John Holland, Kapitol Group, Linesight, Manteena Group, Nilsen, Paramount Airconditioning, Parratech, SCEE Group, Stowe Australia, and Taylor Group Construction.
• Support Infrastructure Providers: ABB, Airedale, Alfa Laval, Canovate, Caterpillar, Condair, Cummins, Delta Electronics, Eaton, Everett Smith & Co, Green Revolution Cooling, HITEC Power Protection, Kohler, Legrand, Mitsubishi Electric, Piller Power Systems, Rittal, Rolls Royce, Schneider Electric, STULZ, Thycon, Vertiv.
• 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.
• New Entrants: GreenSquareDC, Stockland, Supernode, Trifalga, Vantage Data Centers.