Australia Data Center Market - Investment Analysis & Growth Opportunities 2023–2028

MARKET OUTLOOK

The Australia data center market will witness investments of over USD 9.49 billion by 2028, growing at a CAGR of 7.05% during the forecast period. The upsurge in digital transformation initiatives undertaken by various organizations has propelled the demand for cloud-based services, and this trend is expected to continue in the future and increase the demand for data centers in the country.

The Australia data center market and cloud industry have experienced remarkable growth, resulting in Sydney's continued position as the primary interconnection hub for major cloud providers such as AWS, Microsoft Azure, and Google Cloud. The flourishing market has attracted significant investments from global colocation operators like STACK Infrastructure and Vantage Data Centers, who are constructing hyperscale data centers and campuses to meet the demand for reliable and secure data centers.

In addition to global operators, new data center operators like GreenSquareDC are entering the Australia data center market to capitalize on the growth potential. The country received significant investments from hyperscale operators. For instance, In January 2023, AWS unveiled its new cloud region in Melbourne, which serves as its second region in Australia.

KEY HIGHLIGHTS

• The increasing number of enterprises migrating their operations to cloud-based platforms and embracing digital transformation initiatives has made the demand for dependable and secure data centers more critical.
• To support this trend, the Australian government executed a digital transformation strategy to facilitate the seamless migration of enterprises to the cloud platform. This strategy includes policies, programs, and initiatives that promote the adoption of cloud-based services and support the growth of the Australia data center market.
• Australia has a presence of both local and global colocation data centers operators such as NEXTDC, DCI Data Centres, DC Two, Equinix, and Digital Realty, among others.
• Operators in the country are investing heavily in purchasing industrial land to develop new data centers. For instance, in October 2022, planning permission was approved for the new colocation data center firm GreenSquareDC to develop a facility.
• The Australia data center market operators procure enormous amounts of renewable energy to power their operations. For instance, in April 2023, Digital Realty agreed to procure renewable energy with energy retailer Origin Energy to obtain renewable energy harnessed using wind power. This deal will enable Digital Realty's portfolio in Australia to balance energy demand with renewable sources starting in 2024.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the 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 states in the country.
• A detailed study of the existing Australia data center market landscape, an in-depth industry 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): 136
  • Facilities Identified (Upcoming): 22
  • Coverage: 20+ Locations
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data center colocation market in Australia
  • Market Revenue & Forecast (2022-2028)
  • Retail Colocation Pricing
• The Australia 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 market.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the market.
• A transparent research methodology and the analysis of the demand and supply aspects of the market.

VENDOR LANDSCAPE

• Some key investors in the Australia data center market include CDC Data Centres, DC Two, Digital Realty, AirTrunk, DCI Data Centers, and Equinix.
• The market has witnessed data center investments from new entrants such as GreenSquareDC, STACK Infrastructure, and Stockland.
• The Australia data center market is growing, with significant investments from major players such as Google, Microsoft, and AWS.
• The construction contractors in the country have both global and local presence, supplying major operators in the market. For instance, AECOM, AREA3, Aurecon Group, AW Edwards, FDC Construction & Fitout Pty Ltd., and Hutchinson Builders.

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)

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
  • Transfer Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Rack Cabinets
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers & Dry Coolers
  • Economizers & Evaporative Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • Data Center Infrastructure Management (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 Vantara, IBM, Juniper Networks, Lenovo, Oracle, Pure Storage, Quanta Cloud Technology, and Super Micro Computer.
• Data Center Construction Contractors & Sub-Contractors: AECOM, AREA3, Aurecon Group, Benmax, Bouygues Construction (AW Edwards), Dem, FDC Construction & Fitout Pty Ltd., Greenbox Architecture, HDR (Hurley Palmer Flatt), Hutchinson Builders, Icon, ISG, John Holland, Linesight, Nilsen, Paramount Airconditioning, Parratech, Stowe Australia, and Taylor Group Construction.
• Support Infrastructure Providers: ABB, Alfa Laval, Canovate, Caterpillar, Condair, Cummins, Delta Electronics, Eaton, Everett Smith & Co, Green Revolution Cooling (GRC), HITEC-Power Protection, KOHLER, Legrand, Mitsubishi Electric, Rittal, Piller Power Systems, Rolls-Royce, Schneider Electric, STULZ, Thycon, Vertiv.
• Data Center Investors: CDC Data Centres, DC Two, DC Alliance, Digital Realty, AirTrunk, DCI Data Centers, Equinix, Keppel Data Centres, Leading Edge Data Centres, Macquarie Telecom Group, NEXTDC, Hickory, Edge Centres.
• New Entrants: GreenSquareDC, STACK Infrastructure, Stockland, Supernode, Trifalga, and Vantage Data Centers.