Australia’s Data Centres 2024

An industry-first report providing a comprehensive overview of Australia’s Data Centres.

Key Points:

• Demand for data centers is exponentially increasing, mainly due to greater data generation and storage, growing adoption of cloud computing services, and advancements in technology (including AI).
• Data centres require considerable amounts of power that is reliable, and this is one of the key drivers for site selection.
• The Australian Government has both contributed to fostering the key growth drivers of data centres, as well as being a key sector using data centres.
• There are several global data centre operators that operate in Australia and are expanding their capacity – mainly driven by hyperscalers. Australia’s built-out capacity is forecast to double in the next decade.
• There is close to 1.5GW of built-out capacity in Australia, with the concentration of  capacity in Sydney. The future pipeline indicates Melbourne’s share of capacity will grow significantly in the next decade.
• Data centre operators will continue to expand their footprint in Australia, however adequate power supply is the main inhibitor to growth.
• The average size of land being absorbed by data centres has been growing over the past few years, and this trend is expected to continue as more land is purchased for AI data centres.
• We expect to see more leases and/or strategic partnerships as a means for hyperscalers to secure space in the Australian market. The recent acquisition of AirTrunk in Australia marks the largest data centre transaction globally.