Australia Data Center Colocation Market - Supply & Demand Analysis 2025-2030

AUSTRALIA DATA CENTER COLOCATION MARKET

The Australia data center colocation market size was valued at USD 1.72 billion in 2024 and is expected to reach USD 4.98 billion by 2030, growing at a CAGR of 19.34% during the forecast period. Australia hosts around 500 industrial parks, including Kwinana Strategic Industrial Park, Norwest Business Park, Leppington Business Park, Westlink Industry Park, Peel Business Park, Sydney Business Park, Bundaberg Industrial Park, and others. These industrial parks attract local and global colocation companies to establish and operate their data centers within these industrial parks by offering several benefits, such as incentives, tax deductions, basic infrastructure, shared resources facilities, and other benefits.

Australia is one of the prominent colocation data center hubs in Southeast Asia, which consists of approximately 145 operational colocation data center facilities, of which around 41 facilities are in Sydney, and 23 in Melbourne. The Australia data center colocation market is also witnessing the development of over 37 data center facilities across multiple cities of the country, including Sydney, Melbourne, Canberra, Darwin, Perth, and others. Furthermore, the Privacy Act 1988 in Australia regulates how personal information is stored and processed, and this act plays a significant role in boosting the confidence of enterprises to store their personal data in the colocation data center facilities, as this law helps to protect the individual’s data from potential data breaches and fraud.

The country consists of around 21 operational submarine cables, which are increasing the demand for the development of colocation data centers across multiple cities in Australia. These submarine cables increase the data transmission speeds and enhance the digital connectivity of Australia with other nations. In 2025, around 11 new submarine cables are being developed in Australia, which will further enhance the digital connectivity of the country with other nations. Moreover, the Australia data center colocation market consists of several prominent colocation operators, such as CDC Data Centres, AirTrunk, NEXTDC, Equinix, Global Switch, Macquarie Data Centres, DCI Data Centers, STACK Infrastructure, Fujitsu, Digital Realty, and others.

The demand for colocation services in Australia is specifically generated by sectors, such as Cloud, IT, BFSI, entertainment, media, and others. The colocation demand from BDSI, media, entertainment, and other sectors is expected to decline in the forecast period, and the cloud sector is expected to contribute significantly to generating the demand for colocation services by 2030 in the country, as enterprises across various sectors are preferring to migrate their workloads to the cloud.

Australia is committed to achieving a net-zero greenhouse gas emissions target by 2050. Therefore, the country is making significant efforts to increase the share of renewable sources to around 82% by 2030 in the energy mix. Australia aims to produce approximately 48% of the overall electricity through renewable sources in 2025. Furthermore, the continuous surge in AI workloads is increasing the demand for high-density racks in the colocation facilities in the Australia data center colocation market. The colocation operators are investing in installing racks, which offer power densities of more than 100 kW per rack. For instance, in 2025, NEXTDC plans to develop an M4 data center facility in Melbourne, which can support rack densities of around 1 MW per rack.

WHAT'S INCLUDED?

1. Transparent research methodology and insights on the industry's colocation of demand and supply.
2. The market size is available in terms of utilized white floor area, IT power capacity, and racks.
3. The market size available in terms of Core & Shell Vs Installed Vs Utilized IT Power Capacity, along with the occupancy %.
4. The study of the existing Australia data center industry landscape and insightful predictions about industry size during the forecast period.
5. An analysis of the current and future colocation demand in Australia by several industries.
6. Study on the sustainability status in the country
7. Analysis of current and future cloud operations in the country.
8. Snapshot of upcoming submarine cables and existing cloud-on-ramps services in the country.
9. Snapshot of existing and upcoming third-party data center facilities in Australia
10. Facilities Covered (Existing): 145
11. Facilities Identified (Upcoming): 37
12. Coverage: 21+ Cities
13. Existing vs. Upcoming (White Floor Area)
14. Existing vs. Upcoming (IT Load Capacity)
15. Data Center Colocation Market in Australia
16. Colocation Market Revenue & Forecast (2024-2030)
17. Retail Colocation Revenue (2024-2030)
18. Wholesale Colocation Revenue (2024-2030)
19. Retail Colocation Pricing along with Addons
20. Wholesale Colocation Pricing along with the pricing trends
21. An analysis of the latest trends, potential opportunities, growth restraints, and prospects for the Australia data center colocation market.
22. Competitive landscape, including industry share analysis by the colocation operators based on IT power capacity and revenue.
23. The vendor landscape of each existing and upcoming colocation operator is based on the existing/ upcoming count of data centers, white floor area, IT power capacity, and data center location.

TARGET AUDIENCE

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