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.
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.
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 found at 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.
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.
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.
Recent Developments
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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.
Attribute | Details |
Base Year | 2022 |
Historic Data | 2018 – 2021 |
Estimated Year | 2023 |
Forecast Period | 2024 – 2028 |
Quantitative Units | Revenue in USD Million and CAGR for 2018-2022 and 2023-2028 |
Report Coverage | Revenue forecast, company share, competitive landscape, growth factors, and trends |
Segments Covered | Solution Enterprise Size End-User Region |
Regional Scope | New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, Northern Territory |
Key companies profiled | 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 |
Customization scope | 10% free report customization with purchase. Addition or alteration to country, regional & segment scope. |
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