Australia Data Center Market

Australia Data Center Market Overview:

The Australia data center market size reached USD 4.26 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 7.57 Billion by 2032, exhibiting a growth rate (CAGR) of 6.20% during 2024-2032. The market is driven by the increasing demand for cloud services, digital transformation across industries, rising data consumption, and government initiatives supporting data infrastructure, along with growing investments from tech giants in local data center facilities.

Australia Data Center Market Trends:

Government Initiatives and Regulatory Support

The Australian government's push toward digitization, along with its policies promoting secure data storage and local infrastructure, is a key driver of the data center market. For instance, in September 2024, the Reserve Bank of Australia (RBA) revealed that it has selected NTT Australia to design and implement its new IT infrastructure as a part of the CoreMod program, with a contract valued at AU$12.7 million. This program aims to modernize and secure RBA’s infrastructure, with the IT implementation phase running through 2025 and workload migration planned for 2026. The CoreMod initiative is part of a broader effort to establish a future-ready platform, transitioning national critical applications to a new colocation data center by 2027. RBA has made related procurements with NTT Australia for Cisco hardware and software, alongside a contract with Hitachi Vantara for IT infrastructure services. Such initiatives foster a favorable environment for data center investments, thereby creating a positive outlook for the market.

Increasing Investments by Global Technology Giants

Australia has become an attractive location for global technology giants looking to expand their data center presence in the Asia-Pacific region. Companies such as Google, Microsoft, and Amazon are investing significantly in building large-scale data centers to support the growing demand for cloud services, AI, and big data analytics. For instance, in July 2024, Australia announced a $1.35 billion deal with Amazon Web Services (AWS) to build three secure data centers to enhance the military’s capabilities. These top-secret data centers will be located in undisclosed locations across Australia and operated by an AWS subsidiary. Part of Australia's National Defense Strategy, the project aims to support Indo-Pacific security and strengthen intelligence collaboration with key international allies, particularly through the Five Eyes intelligence alliance. The system will utilize artificial intelligence to detect intrusions and facilitate the seamless sharing of classified data between Australia's intelligence agencies and defense forces. The facilities are expected to be operational by 2027.

Australia Data Center Market News:

• In September 2024, Blackstone, a private equity giant, announced that it has acquired Australian data center operator AirTrunk for approximately $16.12 billion. This move comes as the demand for data centers rises, driven by the growth of cloud computing and artificial intelligence (AI). Blackstone sees this acquisition as a strategic step in becoming a global leader in digital infrastructure, with data centers and related services expected to see significant investment globally over the next five years.
• In September 2024, Legrand, a French industrial group, announced two acquisitions in the data center and cable industries. It acquired UPSistemas in Colombia, a company specializing in data center infrastructure integration and maintenance, and Australian Plastic Profiles (APP), an Australian cable management firm. This marks Legrand’s fourth acquisition in the data center sector this year, following its acquisitions of Netrack, Davenham, and Vass. These deals expand Legrand’s footprint, especially in Australia and the data center industry.
• In September 2024, NextDC launched its A1 Adelaide data center, a 5MW facility located in South Australia’s central business district. The data center, occupying 3,000 square meters of IT space, is the first Tier IV certified facility in Adelaide and supports AI workloads. It offers access to over 750 cloud and digital service providers. The new facility is expected to enhance the digital economy, providing vital infrastructure for key industries.
• In September 2024, AirTrunk announced that it has completed the third phase of its SYD2 data center campus in Sydney, Australia, adding 30MW of capacity to the 120MW+ facility. The campus, which launched in 2021, spans 28,000 sqm and supports advanced data needs with a PUE of 1.15.

Australia Data Center Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on component, type, enterprise size, and end user.

Component Insights:

• Solution
• Services
   

The report has provided a detailed breakup and analysis of the market based on the component. This includes solution and services.

Type Insights:

• Colocation
• Hyperscale
• Edge
• Others
   

A detailed breakup and analysis of the market based on the type have also been provided in the report. This includes colocation, hyperscale, edge, and others.

Enterprise Size Insights:

• Large Enterprises
• Small and Medium Enterprises
   

The report has provided a detailed breakup and analysis of the market based on the enterprise size. This includes large enterprises and small and medium enterprises.

End User Insights:

• BFSI
• IT and Telecom
• Government
• Energy and Utilities
• Others
   

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes BFSI, IT and telecom, government, energy and utilities, and others.

Regional Insights: 

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Data Center Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia data center market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Australia data center market?
• What is the breakup of the Australia data center market on the basis of component?
• What is the breakup of the Australia data center market on the basis of type?
• What is the breakup of the Australia data center market on the basis of enterprise size?
• What is the breakup of the Australia data center market on the basis of end user?
• What are the various stages in the value chain of the Australia data center market? 
• What are the key driving factors and challenges in the Australia data center?
• What is the structure of the Australia data center market and who are the key players?
• What is the degree of competition in the Australia data center market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia data center market from 2018-2032
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia data center market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia data center industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.