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Australia Data Center Market Size

The Australia Data Center Market is projected to experience growth in its market size over the forecast period, with significant expansion anticipated in the Tier 3 and Tier 4 segments. The Tier 3 segment, known for its high uptime and redundancy, is expected to be the most favored by businesses, while the Tier 4 segment is gaining traction as providers pursue certification for new facilities. This growth trajectory reflects the increasing demand for data center services in Australia, driven by the need for reliable and efficient infrastructure.

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Market Size of australia data center Industry

Australia Data Center Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Volume (2024) 2.67 Thousand MW
svg icon Market Volume (2029) 3.18 Thousand MW
svg icon Largest Share by Tier Type Tier 3
svg icon CAGR (2024 - 2029) 3.60 %
svg icon Fastest Growing by Tier Type Tier 4
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Australia Data Center Market Analysis

The Australia Data Center Market size is estimated at 2.67 thousand MW in 2024, and is expected to reach 3.18 thousand MW by 2029, growing at a CAGR of 3.60%. Further, the market is expected to generate colocation revenue of USD 5,654.5 Million in 2024 and is projected to reach USD 7,534.4 Million by 2029, growing at a CAGR of 5.91% during the forecast period (2024-2029).

USD 5,654.52 Million

Market Size in 2024

USD 7,534.4 Million

Market Size in 2029

33.3%

CAGR (2017-2023)

5.9%

CAGR (2024-2029)

IT Load Capacity

2,665.4 MW

Value, IT Load Capacity, 2024

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The IT load capacity in the Australian data center market is projected to grow steadily and reach 3,181.6 MW by 2029. Government, BFSI, and manufacturing are the major end-user industries expected to showcase significant growth in future.

Total Raised Floor Space

Sq. Ft. 9.56 M

Volume, Raised Floor Space, 2024

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The total raised floor space of the country's data center facilities is expected to reach 11.4 million sq. ft by 2029. NEXTDC opened its AUD 1.5 billion Melbourne facility M3, covering an area of more than 100,000 sq.m.

Installed Racks

478,181

Volume, Installed Racks, 2024

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The total number of installed racks is expected to reach 570,787 units by 2029. STACK Australia constructing a 72 MW campus in the high-growth hyperscale corridor of Truganina, to be delivered in 2024.

# of DC Operators & DC Facilities

37 and 157

Volume, DC Facilities, 2024

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The data centers in the region are majorly tier 3 facilities with a gradual inclination toward tier 4 DC standards. This transformation will improve the DC performance and reduce the downtime of facilities.

Leading Market Player

19.4%

Market Share, AirTrunk Operating Pty Ltd, 2023

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AirTrunk led the Australian data center market. The company opened its second data center in Sydney called SYD2, with over 110 MW capacity, totalling its capacity to over 370 MW.

Tier 3 data center accounted for majority share in terms of volume in 2023, Tier 4 is fastest growing segment

  • Australia has no Tier 1 & 2 certified facilities. The Tier 3 segment of the Australian data center market reached an IT load capacity of 1,185.7 MW in 2021. It is anticipated to grow from 1,616.26 MW in 2022 to 2,615.6 MW by 2029 while recording a CAGR of 7.12%. The Tier IV data center segment reached an IT load capacity of 123 MW in 2021. The capacity is anticipated to grow from 185 MW in 2022 and reach 517 MW by 2029 while recording a CAGR of 15.81%.
  • Tier 3 and 4 data centers are expected to showcase significant growth in the Australian data center market. Tier 3 data centers offer uptime of 99.98%, with N+1 redundancies, which makes them preferable for the highest number of businesses. However, providers are getting the Tier 4 certification for their new facilities. For instance, NextDC’s data center in Brisbane has become the first in the country to receive a Tier 4 constructed facility certification from Uptime Institute.
Australia Data Center Market

Australia Data Center Industry Segmentation

Melbourne, Perth, Sydney are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.

  • Australia has no Tier 1 & 2 certified facilities. The Tier 3 segment of the Australian data center market reached an IT load capacity of 1,185.7 MW in 2021. It is anticipated to grow from 1,616.26 MW in 2022 to 2,615.6 MW by 2029 while recording a CAGR of 7.12%. The Tier IV data center segment reached an IT load capacity of 123 MW in 2021. The capacity is anticipated to grow from 185 MW in 2022 and reach 517 MW by 2029 while recording a CAGR of 15.81%.
  • Tier 3 and 4 data centers are expected to showcase significant growth in the Australian data center market. Tier 3 data centers offer uptime of 99.98%, with N+1 redundancies, which makes them preferable for the highest number of businesses. However, providers are getting the Tier 4 certification for their new facilities. For instance, NextDC’s data center in Brisbane has become the first in the country to receive a Tier 4 constructed facility certification from Uptime Institute.
Hotspot
Melbourne
Perth
Sydney
Rest of Australia
Data Center Size
Large
Massive
Medium
Mega
Small
Tier Type
Tier 1 and 2
Tier 3
Tier 4
Absorption
Non-Utilized
Utilized
By Colocation Type
Hyperscale
Retail
Wholesale
By End User
BFSI
Cloud
E-Commerce
Government
Manufacturing
Media & Entertainment
Telecom
Other End User
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Australia Data Center Market Size Summary

The Australian data center market is experiencing a steady expansion, driven by the increasing demand for data processing and storage solutions. This growth is largely attributed to the rising number of smartphone users and the subsequent surge in data generation, necessitating enhanced data center capabilities. The market is characterized by a significant focus on Tier 3 and Tier 4 data centers, which offer high uptime and redundancy, making them attractive to businesses. The introduction of advanced facilities, such as NextDC's Tier 4 certified data center in Brisbane, underscores the industry's commitment to meeting the growing demands for reliable and efficient data management solutions. The market's expansion is further supported by the National Broadband Network (NBN) initiative, which aims to replace traditional copper and cable broadband with high-capacity optical fiber networks, thereby enhancing internet reliability and speed across the country.

In terms of market dynamics, the Australian data center sector is fragmented, with major players like Digital Realty Trust Inc., Equinix Inc., Fujitsu Group, Keppel DC REIT Management Pte. Ltd, and Telstra Corporation Limited holding a significant share. The market is witnessing substantial investments, as evidenced by Telstra's efforts to build high-capacity data transport networks and Equinix's expansion of its Melbourne data center. These developments are crucial in accommodating the increasing bandwidth demand driven by high-resolution video streaming, gaming, and virtual reality applications. The ongoing expansion and modernization of data center infrastructure are essential to support Australia's growing digital economy and the increasing reliance on mobile and internet-based services.

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Australia Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)

    1. 1.1 Hotspot

      1. 1.1.1 Melbourne

      2. 1.1.2 Perth

      3. 1.1.3 Sydney

      4. 1.1.4 Rest of Australia

    2. 1.2 Data Center Size

      1. 1.2.1 Large

      2. 1.2.2 Massive

      3. 1.2.3 Medium

      4. 1.2.4 Mega

      5. 1.2.5 Small

    3. 1.3 Tier Type

      1. 1.3.1 Tier 1 and 2

      2. 1.3.2 Tier 3

      3. 1.3.3 Tier 4

    4. 1.4 Absorption

      1. 1.4.1 Non-Utilized

      2. 1.4.2 Utilized

        1. 1.4.2.1 By Colocation Type

          1. 1.4.2.1.1 Hyperscale

          2. 1.4.2.1.2 Retail

          3. 1.4.2.1.3 Wholesale

        2. 1.4.2.2 By End User

          1. 1.4.2.2.1 BFSI

          2. 1.4.2.2.2 Cloud

          3. 1.4.2.2.3 E-Commerce

          4. 1.4.2.2.4 Government

          5. 1.4.2.2.5 Manufacturing

          6. 1.4.2.2.6 Media & Entertainment

          7. 1.4.2.2.7 Telecom

          8. 1.4.2.2.8 Other End User

Australia Data Center Market Size FAQs

The Australia Data Center Market is projected to register a CAGR of 3.60% during the forecast period (2024-2029).

Digital Realty Trust Inc., Equinix Inc., Fujitsu Group, Keppel DC REIT Management Pte. Ltd and Telstra Corporation Limited are the major companies operating in the Australia Data Center Market.

Australia Data Center Market Report Snapshots

Australia Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029