Australia Data Center Market to Witness Investment of USD 9.6 Billion by 2027. New Investors Heading Towards Sydney and Melbourne - Arizton
CHICAGO, Nov. 23, 2022 /PRNewswire/ -- According to Arizton's latest research report, the Australia data center market is to reach USD 9.6 Billion by 2027. In 2021, Sydney and Melbourne received 70% of Australia's overall data center investment. New data center investors such as Stockland and Trifalga have invested in the data centers in Sydney. Sydney is a significant data center market in Australia driven by factors such as growth in digitalization, connectivity options, and 5G deployment.
Australia has the presence of several colocation operators. Significant revenue is coming from retail colocation, with wholesale colocation growing steadily due to rising interest from cloud service providers.
In 2021, Finance Ministry in the country started using digital data management services under its Digital Records Transformation Initiative according to the three-year initiative by the government for modernization of the public sector in the country. The country has great potential in renewable energy sources supported by government measures and operator initiatives. For instance, the Government of Australia has launched its renewable energy strategy, aiming to generate around 100% electricity from renewable energy sources by 2030. Operators like NEXTDC and Equinix have also aimed to become carbon neutral with renewable energy adoption.
Australia Data Center Market Report Scope
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The Australia data center market is among the top markets in APAC and is expected to grow at ~45% between 2022 and 2027. The average occupancy rate of colocation capacity is over 75%, with colocation demand in the market driven by cloud and IT sectors, followed by the government and BFSI companies.
Cities such as Sydney and Melbourne will witness more hyperscale developments, with other cities such as Perth, Brisbane, and Adelaide expected to see more edge data center deployment. The Government of Australia is supporting the growth of data centers with initiatives such as the "Industrial Land Strategy" for industrial land development and aiming to increase the share of renewable energy in the total power generated by 50% by 2025.
The market's growth potential has attracted several new entrants, such as GreenSquareDC, STACK Infrastructure, Stockland, Supernode, Trifalga, and Vantage Data Centers. The demand for edge data centers also has been significantly growing, with edge operators such as Edge Centres and Connected Farms announcing the deployment of edge data centers in the country. The market is also expected to witness growth in self-built facilities by cloud service providers in the coming years.
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Japan Data Center Market - Investment Analysis & Growth Opportunities 2022–2027: The Japan data center market is estimated to reach USD 13.3 billion by 2027 from USD 8.4 billion in 2021. Japan is among the top data center market in the APAC region, after China and Australia, in terms of investment. The high internet and social media penetration across the country is driven by the deployment of 5G services, better and improved inland connectivity, availability of renewable energy and free cooling solutions, and others, making Japan an attractive market for investors.
Southeast Asia Data Center Market - Investment Analysis & Growth Opportunities 2022-2027: The Southeast Asia data center market is expected to grow at a CAGR of 6.79% from 2022-2027 and reach USD 12.92 billion by 2027. The region is also witnessing edge data center investments across major and minor cities. For instance, in August 2022, Edge Centres announced the development of its EC61 (Chiang Mai) edge facility in Thailand. The company also has plans to deploy additional facilities, namely, EC63 (Khon Kaen) and EC62 (Phuket). The Southeast Asia data center market is witnessing growth in submarine cable connectivity. For instance, cables such as Southeast Asia Japan Cable, Apricot, and Asia Direct Cable are upcoming submarine cables that will grow the region's connectivity.
Singapore Data Center Market - Investment Analysis & Growth Opportunities 2022-2027: Singapore data center market was valued at USD 4.3 billion in 2021 and is expected to reach USD 5.7 million by 2027. Singapore is one of the top data center markets in APAC. Lifting of the data center moratorium, digitalization, investment in 5G technology, rise in the use of social media, and increased adoption of renewable resources like solar are some of the major factors driving the Singapore data center market.
Malaysia Data Center Market - Investment Analysis & Growth Opportunities 2022-2027: Malaysia data center market is expected to reach USD 1.57 billion by 2027, growing at a CAGR of 6.7% during 2022-2027. The investment in renewable energy, from solar and wind energy to power data centers, is increasing. Companies such as Chindata and YTL Data Centers have set goals to improve the facilities' carbon footprint. Free Trade Zones attract operators to invest in the country by enabling various tax incentives. In March 2022, Yondr announced plans to develop a hyperscale data center campus with a power capacity of around 200 MW on approximately 72.8 acres in Sedenak Tech Park, which is projected to be built phase-wise out of which the first phase is expected to be live by 2024.
Table of Content
1. Existing & Upcoming Third-Party Data Centers in Australia
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