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

152 pages

15 tables

28 charts

1 region

1 countries

82 company

7 segments

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THE AUSTRALIA DATA CENTER MARKET SIZE WAS VALUED AT USD 6.38 BILLION IN 2023 AND IS EXPECTED TO REACH USD 7.71 BILLION BY 2029, GROWING AT A CAGR OF 3.22% DURING THE FORECAST PERIOD

The Australia Data Center Market Report Includes Size in Terms of

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

Get Insights on 135 Existing Data Centers and 23 Upcoming Facilities across Australia

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AUSTRALIA DATA CENTER MARKET REPORT SCOPE

REPORT ATTRIBUTEDETAILS
MARKET SIZE (INVESTMENT)USD 7.71 Billion (2029)
MARKET SIZE (AREA)1,460.0 thousand sq. Feet (2029)
MARKET SIZE (POWER CAPACITY)303.0 MW (2029)
CAGR INVESTMENT (2023-2029)3.22%
COLOCATION MARKET SIZE (REVENUE)USD 2.05 Billion (2029)
HISTORIC YEAR2020-2022
BASE YEAR2023
FORECAST YEAR2024-2029
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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.

Frequently Asked Questions

How big is the Australia data center market?

The Australia data center market will witness investments of USD 7.71 billion by 2029.

How much MW of power capacity will be added across Australia from 2024 to 2029?

Over 1.7 GW of power capacity will be added across Australia from 2024 to 2029.

What is the growth rate of the Australia data center market?

The Australia data center market is projected to grow at a CAGR of 3.22% during the forecast period.

What factors are driving the Australia data center market?

Increasing cloud investments, improvement in inland cable and submarine connectivity & rising recognition of big data, IoT, low-latency networks, adoption of sustainable energy sources, and increasing data center investments will drive the Australia data center market.

Which cities are included in the Australia data center market report?

The Australia data center market report considers Sydney, Melbourne, Perth, and other cities.

How big is the Australia data center market?

The Australia data center market will witness investments of USD 7.71 billion by 2029.

How much MW of power capacity will be added across Australia from 2024 to 2029?

Over 1.7 GW of power capacity will be added across Australia from 2024 to 2029.

What is the growth rate of the Australia data center market?

The Australia data center market is projected to grow at a CAGR of 3.22% during the forecast period.

What factors are driving the Australia data center market?

Increasing cloud investments, improvement in inland cable and submarine connectivity & rising recognition of big data, IoT, low-latency networks, adoption of sustainable energy sources, and increasing data center investments will drive the Australia data center market.

Which cities are included in the Australia data center market report?

The Australia data center market report considers Sydney, Melbourne, Perth, and other cities.

How big is the Australia data center market?

The Australia data center market will witness investments of USD 7.71 billion by 2029.

How much MW of power capacity will be added across Australia from 2024 to 2029?

Over 1.7 GW of power capacity will be added across Australia from 2024 to 2029.

What is the growth rate of the Australia data center market?

The Australia data center market is projected to grow at a CAGR of 3.22% during the forecast period.

Which cities are included in the Australia data center market report?

The Australia data center market report considers Sydney, Melbourne, Perth, and other cities.

What factors are driving the Australia data center market?

Increasing cloud investments, improvement in inland cable and submarine connectivity & rising recognition of big data, IoT, low-latency networks, adoption of sustainable energy sources, and increasing data center investments will drive the Australia data center market.

The Australia data center market size is projected to reach USD 7.71 billion by 2029, growing at a CAGR of 3.22% from 2023 to 2029.

The following factors are likely to contribute to the growth of the Australia data center market during the forecast period:

  • Growing Connectivity in the Market via Submarine Cables
  • Adoption of Cloud Services Gaining Momentum
  • Big Data and IoT Driving Data Center Investments
  • Enterprise Operators Migrating to Cloud Infrastructure

Base Year: 2023

Forecast Year: 2024-2029

The report considers the present scenario of the Australia data center market and its market dynamics for 2024-2029. It covers a detailed overview of several market growth enablers, restraints, and trends. The study includes the demand and supply aspects of the market

The report includes the investment in the following areas:

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
    • 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
    • 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 

Exhibit 1 Third-Party Data Centers Snapshot
Exhibit 2 Third-Party Data Center Snapshot by Cities
Exhibit 3 Area Developed by Cities (Thousand Square Feet)
Exhibit 4 Power Capacity by Cities (MW)
Exhibit 5 Data Center Market Size & Forecast by Investment 2020-2029 ($ Million)
Exhibit 6 Data Center Market Size & Forecast by Area 2020−2029 (Thousand Square Feet)
Exhibit 7 Market Size & Forecast by Power Capacity 2020−2029 (MW)
Exhibit 8 Data Center Colocation Service Revenue: Market Size & Forecast by 2020−2029 ($ Million)
Exhibit 9 Retail vs. Wholesale Colocation Revenue: Market Size & Forecast by 2020−2029 ($ Million)
Exhibit 10 Retail & Wholesale Colocation Pricing 2023
Exhibit 11 Market Size & Forecast by IT Infrastructure 2020−2029 ($ Million)
Exhibit 12 Market Size & Forecast by Electrical Infrastructure 2020−2029 ($ Million)
Exhibit 13 Market Size & Forecast by Mechanical Infrastructure 2020−2029 ($ Million)
Exhibit 14 Market Size & Forecast by Cooling Systems 2020−2029 ($ Million)
Exhibit 15 Market Size & Forecast by General Construction 2020−2029 ($ Million)
Exhibit 16 Market Size & Forecast by Tier Standards 2020−2029 ($ Million)
Exhibit 17 Data Center Market Size & Forecast in Sydney by Investment 2020-2029 ($ Million)
Exhibit 18 Data Center Market Size & Forecast in Sydney by Area 2020−2029 (Thousand Square Feet)
Exhibit 19 Market Size & Forecast in Sydney by Power Capacity 2020−2029 (MW)
Exhibit 20 Data Center Market Size & Forecast in Melbourne by Investment 2020-2029 ($ Million)
Exhibit 21 Data Center Market Size & Forecast in Melbourne by Area 2020−2029 (Thousand Square Feet)
Exhibit 22 Market Size & Forecast in Melbourne by Power Capacity 2020−2029 (MW)
Exhibit 23 Data Center Market Size & Forecast in Perth by Investment 2020-2029 ($ Million)
Exhibit 24 Data Center Market Size & Forecast in Perth by Area 2020−2029 (Thousand Square Feet)
Exhibit 25 Market Size & Forecast in Perth by Power Capacity 2020−2029 (MW)
Exhibit 26 Data Center Market Size & Forecast in Other Cities by Investment 2020-2029 ($ Million)
Exhibit 27 Data Center Market Size & Forecast in Other Cities by Area 2020−2029 (Thousand Square Feet)
Exhibit 28 Market Size & Forecast in Other Cities by Power Capacity 2020−2029 (MW)

LIST OF TABLES

Table 1 List of Upcoming Data Center Projects
Table 2 Data Center Site Selection Criteria
Table 3 Overall Market Size & Forecast 2020−2029
Table 4 Market Size & Forecast by Colocation Service 2020−2029 ($ Million)
Table 5 Market Size & Forecast by Infrastructure 2020−2029 ($ Million)
Table 6 Market Size & Forecast by IT Infrastructure 2020−2029 ($ Million)
Table 7 Market Size & Forecast by Electrical Infrastructure 2020−2029 ($ Million)
Table 8 Market Size & Forecast by Mechanical Infrastructure 2020−2029 ($ Million)
Table 9 Market Size & Forecast by Cooling Systems 2020−2029 ($ Million)
Table 10 Market Size & Forecast by General Construction 2020−2029 ($ Million)
Table 11 Investment Market Size & Forecast by Tier Standards 2020−2029 ($ Million)
Table 12 Investment Market Size & Forecast by Sydney 2020-2029
Table 13 Investment Market Size & Forecast by Melbourne 2020-2029
Table 14 Investment Market Size & Forecast by Perth 2020-2029
Table 15 Investment Market Size & Forecast by Other Cities 2020-2029

1.    Existing & Upcoming Third-Party Data Centers in Australia
1.1.    Historical Market Scenario
1.2.    135+ Unique Data Center Properties
1.3.    Data Center IT Load Capacity
1.4.    Data Center White Floor Area
1.5.    Existing Vs. Upcoming Data Center Capacity by Cities
1.6.    Cities Covered
1.6.1.    Sydney
1.6.2.    Melbourne
1.6.3.    Perth
1.6.4.    Other Cities
1.7.    List of Upcoming Data Center Projects

2. Investment Opportunities in Australia
2.1. Microeconomic and Macroeconomic Factors of the Australia Market
2.2. Investment Opportunities in Australia
2.3. Investment by Area
2.4. Investment by Power Capacity

3. Data Center Colocation Market in Australia
3.1 Demand Across Several Industries in Australia 
3.2. Colocation Services Market in Australia
3.3. Retail vs Wholesale Data Center Colocation
3.4. Retail & Wholesale Colocation Pricing

4. Market Dynamics
4.1. Market Drivers
4.2. Market Trends
4.3. Market Restraints

5. Market Segmentation
5.1. IT Infrastructure: Market Size & Forecast
5.2. Electrical Infrastructure: Market Size & Forecast
5.3. Mechanical Infrastructure: Market Size & Forecast
5.4. General Construction Services: Market Size & Forecast

6. Tier Standard Investment
6.1. Tier I & II
6.2. Tier III
6.3. Tier IV

7. Geography
7.1. Sydney
7.2. Melbourne
7.3. Perth
7.4. Other Cities

8. Key Market Participants
8.1. IT Infrastructure Providers
8.2. Construction Contractors
8.3. Support Infrastructure Providers
8.4. Data Center Investors
8.5. New Entrants

9. Appendix
9.1. Market Derivation
9.2 Site Selection Criteria 
9.3. Quantitative Summary

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Frequently Asked Questions

How big is the Australia data center market?

The Australia data center market will witness investments of USD 7.71 billion by 2029.

How much MW of power capacity will be added across Australia from 2024 to 2029?

Over 1.7 GW of power capacity will be added across Australia from 2024 to 2029.

What is the growth rate of the Australia data center market?

The Australia data center market is projected to grow at a CAGR of 3.22% during the forecast period.

What factors are driving the Australia data center market?

Increasing cloud investments, improvement in inland cable and submarine connectivity & rising recognition of big data, IoT, low-latency networks, adoption of sustainable energy sources, and increasing data center investments will drive the Australia data center market.

Which cities are included in the Australia data center market report?

The Australia data center market report considers Sydney, Melbourne, Perth, and other cities.

How big is the Australia data center market?

The Australia data center market will witness investments of USD 7.71 billion by 2029.

How much MW of power capacity will be added across Australia from 2024 to 2029?

Over 1.7 GW of power capacity will be added across Australia from 2024 to 2029.

What is the growth rate of the Australia data center market?

The Australia data center market is projected to grow at a CAGR of 3.22% during the forecast period.

What factors are driving the Australia data center market?

Increasing cloud investments, improvement in inland cable and submarine connectivity & rising recognition of big data, IoT, low-latency networks, adoption of sustainable energy sources, and increasing data center investments will drive the Australia data center market.

Which cities are included in the Australia data center market report?

The Australia data center market report considers Sydney, Melbourne, Perth, and other cities.

How big is the Australia data center market?

The Australia data center market will witness investments of USD 7.71 billion by 2029.

How much MW of power capacity will be added across Australia from 2024 to 2029?

Over 1.7 GW of power capacity will be added across Australia from 2024 to 2029.

What is the growth rate of the Australia data center market?

The Australia data center market is projected to grow at a CAGR of 3.22% during the forecast period.

Which cities are included in the Australia data center market report?

The Australia data center market report considers Sydney, Melbourne, Perth, and other cities.

What factors are driving the Australia data center market?

Increasing cloud investments, improvement in inland cable and submarine connectivity & rising recognition of big data, IoT, low-latency networks, adoption of sustainable energy sources, and increasing data center investments will drive the Australia data center market.