Australia Data Center Market By Solution (IT Infrastructure, General Infrastructure, Electrical Infrastructure, Mechanical Infrastructure and Others), By Enterprise Size (Large Enterprises and Small & Medium Enterprises (SMEs)), By End-User (Information Technology & Telecom, Government, BFSI, Healthcare and Others), By Region, Competition Forecast & Opportunities, 2028F

Australia data enter market is anticipated to witness a growth of steady CAGR during the forecast period, 2024-2028. Key factors influencing the rising need for data centers in the nation include the increasing demand for cloud computing among SMEs, government rules for regional data security, and rising domestic investment.​ A data center is a physical room, building, or other structure that houses the IT technology needed to create, execute, and provide applications and services to store and manage the data. Over the past few years, data centers have changed from being privately owned, to strictly regulated on-premises facilities.

Adoption of Big Data & IoT Technologies in different sectors in Data Centers

 Australia is seeing a steady increase in the adoption of smart technologies like big data and IoT in various sectors. For instance, in agriculture sector, several startups deploy big data analytics solutions. In healthcare sector, big data analytics solutions are utilized for storing of patient health records and disease records, among other things. Australia has a systematic healthcare system and around 10% of GDP, or about the OECD average, is spent on healthcare. Due to this growth in demand from healthcare sector, the market for data centers is also booming. In banking sector, the Government of Australia is focusing on big data and machine learning tools deployed by Commonwealth Bank of Australia to provide same-day emergency support to its customers in the event of a natural disaster. The Australian government unveiled its National Data Plan in December 2021 with the goal of maximizing data utilization and repurposing throughout the economy. Additionally, the University of Sydney in November 2021 stated that COVID-19 patients would be participating in pilot testing of its IoT integrated admission screen system. Moreover, the Australian government proposed IoT rating systems and expiry date systems for the nation in July 2021.

The Commonwealth Bank of Australia established a collaborative venture with the data analytics company Quantum in May 2021 to automate decision-making processes for its clients.  Big data and Internet of Things (IoT) technologies are high computational power technologies that generate a lot of data flow. By introducing more servers to handle broadband information and making a tall request for information centers, in this way enhancing rack power density. The need for converged and hyperconverged infrastructure would rise as a result, due these factors the market for the Australia Data center would grow in the forecast period. 

Procurement of Renewable Energy Sources in Australia

Government agencies and data centers are making significant investments in renewable energy sources in the Australian market. Renewable energy sources like hydro, solar, wind, bio, and ocean energies are readily available in Australia. The government is launching a number of efforts to advance and encourage the use of renewable energy sources across the nation. Australia's National Electricity Market (NEM) predicts that by 2030, the country's contribution of renewable energy would be close to 41%. Around 32.5% of the nation's total energy production as of 2021 came from renewable sources. Over 65 wind and solar power projects with a combined power capacity of more than 7 GW were under construction in the nation by 2021. All these initiatives are expected to create further opportunities for the data center market in Australia. The Small-scale Renewable Energy Scheme (SRES), which has been developed by the Australian government, allows for the installation of small-scale renewable energy systems (wind, hydro, and solar) that can benefit both households and businesses.

Renewable energy sources are now being used by data center operators nationwide to power their facilities. DCI Data Centers announced in January 2022 that it had contracted with Brookfield Asset Management for a green and sustainability term loan. The 400-kW solar PV rooftop at NEXTDC's M1 Melbourne data center powers the facility's data centers. Additionally, the data center is the first in Australia to receive a 5-star rating from NABERS for its infrastructure. DUG Technology made plans to build a campus with a carbon-free data center in Western Australia that would be powered by renewable energy, Thus, data centers market in Australia will benefit from lower energy costs and advanced technologies while promoting a greener future.

Adoption of Cloud Computing Services Will Lead to Growth in the Market

The Australia data center market is experiencing growth with a rising influx of investments from various cloud service providers, both local and international. Companies such as Amazon Web Service (AWS), Oracle, Microsoft, Google, Macquarie Telecom, and Vault Systems are actively investing in this market, making it one of the emerging markets in the APAC region. Businesses all over the country are moving their data to private and hybrid cloud models in response to the expanding digital revolutions and the requirement for portable and secure data storage. It has caused a rise in investments in the nation's cloud computing business. Additionally, in July 2021, Google, a cloud computing provider, launched its second cloud area in Melbourne. The international cloud service provider, AWS, announced the extension of its services in Australia in April 2022. It also claimed that it would promote the digital transformation of start-ups, businesses, and government organizations. Furthermore, Amazon Web Service (AWS) also launched the nation's second cloud region by the end of 2022. These investments from multiple cloud service providers, including Amazon Web Service (AWS), Oracle, Microsoft, Google, Macquarie Telecom, and Vault Systems, are collectively driving the growth of the Australia data center market. As a result, the market is expanding, and there is a wider variety of new services becoming available.

5G Deployment and Smart Cities Initiatives Lead Edge Data Center Investments

In commercial and industrial locations, 5G services are being deployed and used in the Australian market. Leading providers including Telstra, Vodafone, TPG Telecom, and Optus are implementing 5G in Australia. Owing to 5G Deployment and Smart Cities investments the demand for data centers is growing in Australia. Additionally, Telstra has installed over 2,500 5G base stations, providing service to 41% of the country's residents. Optus runs more than 900 5G locations across the nation. Australia adopted a combination of 5G FDD GHz and TDD with spectrum ranges of 2.1 GHz and 3.5 GHz, respectively, using the carrier aggregation approach. Therefore, data centers in Australia are investing in new technologies to become more sustainable, secure, and cost-effective. For instance, Nokia opened its 5G industrial incubation lab in South Australia in 2022. The Australian government announced intentions to invest roughly USD750 million in the NBN fixed wireless network in March 2022, with NBN (two ways Australian households can connect to the internet) contributing the remaining USD480 million. The funding will help NBN scale and expedite the deployment of 5G millimeter wave technology throughout the fixed wireless network. As a result, Australian data centers are making investments in cutting-edge technology to become more cost-efficient, secure, and environmentally friendly.

Recent Developments

·        Leading Edge Data Centres, an Australian provider of edge data centers, launched a new site in Albury, New South Wales, in September 2022. The brand-new ABX1 facility, built to Tier III grade specifications, has a 750kW capacity distributed over 580 sqm.

·     In January 2022, DXN, an Australian data center company, made an announcement regarding the construction of a modular data center for the upcoming COVID-19 quarantine facility in Perth, Western Australia. DXN disclosed that it had been contracted by the construction company Multiplex to provide a modular data center and ten communications rooms for a total cost of USD2.5 million.

·        In November 2021, AirTrunk announced its plans to construct a new data center in Sydney. Once finished, this facility will become the largest single hyperscale campus in the Asia Pacific (APAC) region, excluding China, with a capacity of 320MW. The construction will be carried out in nine phases, covering an area of 8.3 hectares, and will include a dedicated 132KV substation. AirTrunk aims to achieve a Power Usage Effectiveness (PUE) of 1.15, ensuring minimal carbon impact. The data centers SYD1 and SYD3, marketed by AirTrunk as its "Western Sydney Region," will collectively provide over 450MW of capacity.

·      On November 20, 2021, Canberra Data centers (CDC), a prominent data center provider, announced its plans to expand its presence in Australia by constructing a new 268MW facility in Melbourne. This facility will significantly augment CDC's existing development initiatives by adding 150MW of capacity, resulting in a combined development and operating capacity of 700MW. The company aims to have a total of 13 operational data centers by 2023.

·    In February 2021, Australian Data Centers (ADC) chose Oracle Committed Region Cloud Client to supply imperial facilitated cloud administrations to the Australian Government. By partnering with Oracle, ADC aims to enhance its existing services to the government, with a particular focus on securing workloads in areas such as national security, health, human services, and other departments and agencies handling sensitive data pertaining to Australia and its citizens. The dedicated region cloud customer will be hosted within ADC's state-of-the-art secure data center facility located in Canberra.

·       In July 2022, SoftIron and Servers Australia, a private hosting company in Australia, formed a partnership to establish a scalable hybrid cloud infrastructure in the country. This collaboration aims to provide advanced cloud solutions to cater to evolving business needs. Similarly, in July 2022, Bank of Queensland made a significant decision to transition from traditional data centers to leverage the benefits of public cloud services. This strategic shift is intended to transform their business processes and enhance operational efficiency. Furthermore, in June 2022, the Commonwealth Bank of Australia announced its selection of Mambu, a SaaS cloud banking platform, for its digital mortgage services. By adopting this platform, the bank aims to streamline and optimize its mortgage services using cloud-based technology in the coming future.

Market Segmentation

Australia Data Center Market can be segmented by solution, enterprise size, end user, region, and competitive landscape. Based on solution, the market is divided into IT infrastructure, general infrastructure, electrical infrastructure, mechanical infrastructure, and others. Based on enterprise size, the market is segmented into large enterprises and small & medium enterprises (SMEs). Based on end-user, the market is divided into information technology & telecom, government, BFSI, healthcare, and others. Based on region, the market is divided into New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, Northern Territory.

Market Players

AirTrunk Operating Pty Ltd., Intervolve Pty Ltd. (Vintek Group), Keppel DC REIT Management Pte. Ltd., Canberra Data Centers Pty Ltd., Digital Realty Trust, Inc., EQUINIX AUSTRALIA PTY LIMITED are some of the leading players operating in the Australia Data Center Market.

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Report Scope:

In this report, the Australia Data Center Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·         Australia Data Center Market, By Solution:

o   IT Infrastructure

o   General Infrastructure

o   Electrical Infrastructure

o   Mechanical Infrastructure

o   Others

·         Australia Data Center Market, By Enterprise Size:

o   Large Enterprises

o   Small & Medium Enterprises (SMEs)

·         Australia Data Center Market, By End-User:

o   Information Technology & Telecom

o   Government

o   BFSI

o   Healthcare

o   Others

·         Australia Data Center Market, By Region:

o   New South Wales

o   Victoria

o   Queensland

o   Western Australia

o   South Australia

o   Tasmania

o   Northern Territory

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Australia Data Center Market.

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With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

·         Detailed analysis and profiling of additional market players (up to five).