Australia Data Centre Market Report and Forecast 2024-2032

Australia Data Centre Market Outlook

The Australia data centre market size was nearly USD 6.37 billion in 2023. The market is estimated to grow at a CAGR of 6.3% during 2024-2032 to reach around USD 11.18 billion by 2032.

Key Trends in the Market

A data centre is a physical IT infrastructure which houses numerous computers to process, store, and share data. Technology companies depend upon data centres as a key component in delivering online services, making them a crucial asset for everyday functions.

Data centres centralise an organisation’s IT operations and provide services such as data storage, management, backup, and recovery, among others. In the past few years, the need for data centres has increased due to evolving working habits, technological advancements, and the growth of cloud-based technologies, among others.

• Rapid digital transformation in the country is positively influencing the Australia data centre market demand. By offering services such as data backup, storage, management, and recovery, high-volume transactions, and productivity applications, data centres play an indispensable role in supporting businesses to securely and efficiently manage, analyse, and store data.

• Advancements in technologies such as cloud computing, artificial intelligence, the Internet of things (IoT), and edge computing, among others, coupled with the high penetration of smartphones, are stimulating the Australia data centre market growth. Furthermore, the introduction of 5G networks with high throughput and low latency is anticipated to bolster the development of data centres with enhanced scalability, neutrality, interconnectedness, and flexibility, among others.

• Sustainable data centres are gaining significant priority among stakeholders amid growing concerns regarding the impending climate crisis. The improved efficiency and productivity of green data centres, along with their lower total cost of operation (TCO), are significantly boosting their adoption.

Moreover, the introduction of sustainable initiatives by the government to mitigate the environmental impact of data centres is driving the Australia data centre market expansion. In May 2023, the Digital Transformation Agency of the Australian government established a new data central panel to promote sustainable practices across data centres and achieve net-zero carbon emissions in the country.

Australia Data Centre Market Segmentation

Based on component, the market is bifurcated into solution and service. Based on enterprise size, the market is divided into large enterprises and small and medium enterprises.

Based on type, the market is categorised into colocation, hyperscale, and edge, among others. Based on end use, the market division includes BFSI, IT and telecommunication, e-commerce, media and entertainment, government, and energy and utilities, among others.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter’s five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the Australia data centre market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

• AirTrunk Operating Pty Ltd

• Nextdc Ltd. 

• CDC Data Centres Pty Ltd. 

• Fujitsu Ltd

• Equinix Inc

• Global Switch Holdings Limited 

• Digital Realty Trust Inc. 

• Leaseweb Global B.V

• Telstra Corporation Limited 

• Macquarie Technology Group Limited  

• Others

Market Share by Type

As per the Australia data centre market analysis, the demand for colocation data centres is significantly increasing as they provide an ideal environment for accommodating hybrid cloud infrastructure, offer high speed connectivity, and ensure strict security measures, among others. Under this facility, multiple clients can rent floor, rack space, and equipment from a third-party supplier to meet their own data center needs. This type of data centre also helps small businesses with limited IT resources to get computing power and storage.

Moreover, colocation data centres provide a high level of safety due to stringent security protocols, biometric access controls, round-the-clock surveillance, and state-of-the-art fire suppression systems, boosting their demand in several end-use sectors like BFSI and IT and telecom, among others.

Market Share by End Use

The BFSI sector represents a significant portion of the Australia data centre market share. In the fast-moving world of finance, data centres play a vital role in ensuring the security and efficiency of transactions. Financial institutions, including banks and investment firms, rely on data center to control and process huge amounts of data related to day-to-day operations such as customer account information, transaction data, and market insights, among others.

Another crucial advantage of data centers for financial transactions is their ability to provide a high degree of safety, security, and reliability. Moreover, the Australia data centre market is anticipated to grow at a healthy pace in the forecast period due to growing concerns regarding unauthorised access and cyber threats in the BFSI sector.

Competitive Landscape

AirTrunk Operating Pty Ltd. was established in 2015 and is headquartered in North Sydney, Australia. It is a hyperscale data centre specialist that has developed a platform for cloud, content, and large enterprise customers across the Asia Pacific and Japan. The company develops and operates data centres for industries related to reliability, technology innovation and energy, and water efficiency.

Nextdc Ltd. was established in 2010 and is headquartered in Brisbane, Australia. Its mission is to assist customers unveil the power of the digital age and drive business outcomes that are more sustainable, responsible, and energy efficient. The company is targeting to achieve 100% renewable energy for its facilities.

CDC Data Centres Pty Ltd. was established in 2007 and is headquartered in Canberra, Australia. Its delivers credible services that underpin multiple government and crucial infrastructure organisations, to ensure the safety, prosperity, and security of Australia and New Zealand.

Other Australia data centre market players include Fujitsu Ltd, Equinix Inc, Global Switch Holdings Limited, Digital Realty Trust Inc., Leaseweb Global B.V, Telstra Corporation Limited, and Macquarie Technology Group Limited, among others.

Key Highlights of the Report