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The Australia Data Center Market Size Will Witness Investments of $7.71 Billion by 2029 - Get Insights on 135 Existing Data Centers and 23 Upcoming Facilities across Australia - Arizton
[May 09, 2024]

The Australia Data Center Market Size Will Witness Investments of $7.71 Billion by 2029 - Get Insights on 135 Existing Data Centers and 23 Upcoming Facilities across Australia - Arizton

CHICAGO, May 9, 2024 /PRNewswire/ -- According to Arizton's latest research report, the Australia data center market is growing at a CAGR of 3.22% during 2023-2029.

Australia Data Center Market Research Report by Arizton

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Australia Data Center Market Report Scope

Report Attributes


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 Year


Base Year


Forecast Year


The data center market in Australia has been witnessing significant growth in investments over the past few years. It is expected to grow at an absolute growth rate of around 20% between 2023-2029. Australia is among the top destinations for data center investments in the APAC region.

Sydney, Melbourne, and Perth are the primary data center hubs hosting most data centers in the country. Canberra, Brisbane, Darwin, and other cities are among the emerging locations in Australia with abundant land availability for data center development.

Investment Opportunities

  • In November 2023, OVHcloud announced the launch of its upcoming SYD3 Sydney data center facility, which is expected to be operational in 2024.
  • In November of 2023, Rest Super invested about $656 million in a data center in Brisbane, which Quinbrook Infrastructure Partners are developing.
  • In November 2023, NEXTDC announced the development of the D1 data center facility in Darwin; the facility is expected to go operational by Q2 2024.
  • AirTrunk announced the expansion of its SYD2 data center campus in Sydney; once fully built, the facility will account for an additional power capacity of around 30 MW, making it an aggregate capacity of around 120 MW. This second phase is expected to be completed in 2024. AirTrunk's upcoming SYD3 Sydney facility calls for an aggregate investment of about $670 million.
  • In an August 2023 news article, Macquarie Data Centres revealed its plan to expand its upcoming IC3 Super West facility in Sydney regarding power capacity. As per January 2024 news article, Macquarie Data Centres has received approval to build/grow the IC3 Super West, its third facility in Sydney.
  • In August 2023, STACK Infrastructure announced the MEL01 A data center launch in Melbourne, located at 399 Palmers Road. The entire campus will have a power capacity of around 72 MW, divided equally between buildings A and B. As of early 2024, Building B is still a work in progress. Furthermore, the company plans new facilities in Canberra, Hume, and Perth.

Rising Procurement of Renewable Energy in Australia Boosting the Market Opportunities

In 2022, according to IRENA, solar energy accounted for around 61% of Australia's overall renewable energy capacity, followed by wind, hydro, and bioenergy (in decreasing order), from which renewable power is extracted for all the sustainable energy needs of the country. Australia aims to achieve its target of zero carbon emissions by 2050. The country announced plans to reach almost 43% less emission than in 2005.

According to the Australia National Electricity Market (NEM), the renewable energy share in the country is expected to reach around 41% by 2030. By 2025, Australia aims to achieve 100% instantaneous renewable energy for its main grid, starting with a half-hour period and gradually increasing to cover hours and days. This transition will be facilitated by an increase in wind, solar, and energy storage solutions to meet the country's new target of 82% renewables by 2030. The retirement of coal-based power generation facilities in the coming years will contribute to this goal.

Microsoft in Australia Recent Development During 2022-2024:

  • In October 2023, Microsoft, a hyperscale tech giant, decided to expand its footprint in Australia by investing over $3 billion to increase and expand its computing capacity in the country by over 250% in the next two years. It is expected to go live by late 2025.
  • In July 2023, Microsoft announced the completion of the construction of Building 1 of the Station Road data center; Building 2 is still a work in progress. This is expected to be completed by late 2024.

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 market.
  • A transparent research methodology and the analysis of the demand and supply aspects of the market.

Market Segmentation

  • 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
    • Data Center Infrastructure Management (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, & 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.

Key Questions Answered in the Report:

Q: How big is the Australia data center market?

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

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

Q: What factors are driving the Australia data center market?

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

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