Australia Artificial Intelligence (AI) Optimised Data Center Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 178.70 Million |
| Market Size (2030) | USD 448.90 Million |
| CAGR (2025 - 2030) | 20.23% |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Australia Artificial Intelligence (AI) Optimised Data Center Market Analysis
The Australia Artificial Intelligence Optimised Data Center Market size is estimated at USD 178.70 million in 2025, and is expected to reach USD 448.90 million by 2030, at a CAGR of 20.23% during the forecast period (2025-2030).
Australia is establishing itself as a significant player in the artificial intelligence (AI) and data center market within the Asia-Pacific region. The country is utilizing its strategic location, renewable energy resources, and growing AI ecosystem to support digital transformation and the adoption of AI technologies across the region.
The Australian Government, through the National Artificial Intelligence Centre, is implementing initiatives to ensure the nation develops and adopts AI in a trusted, secure, and responsible manner. These initiatives include fostering industry collaboration, supporting green data center projects, and investing in AI research and talent development.
Australia's location, competitive energy costs, and government incentives create favorable conditions for investments in AI and data centers. The country is connected to Asia and other regions through 17 subsea cables, with additional cables under development. Western Australia and the Northern Territory are emerging as key suppliers of data center services to Asia due to their proximity, existing undersea cables, and shared time zones. The Australian Government also provides financial support for green data center projects, enhancing the sector's growth potential.
Global commercial real estate company Cushman & Wakefield recently reported in its H2 2024 Asia Pacific Data Centre Market Update that approximately USD 116 billion will be required to develop the existing colocation data center pipeline across the region over the next five to seven years, driven by growing demand. Of this, the Australian market, which is one of five Asian markets accounting for over 80% of the 12.45 GW in the pipeline, is expected to see USD 15.51 billion invested to build out its pipeline. Sydney has recorded significant land acquisitions in 2024 by data center operators, with 986 MW in the development pipeline and an additional 2.4 GW in the land bank stage. Melbourne is also experiencing substantial growth, with its planned capacity now on par with Singapore and Seoul, supported by new terminal stations and increasing operator interest.
Australia Artificial Intelligence (AI) Optimised Data Center Market Trends
The Surge in demand for intensive AI workloads, liquid cooling is emerging as a significant trend, driving energy efficiency
Australia is rapidly scaling its AI infrastructure to meet the growing demands of advanced workloads while prioritizing sustainability and innovative cooling solutions. Companies are investing heavily in expanding data center capacities, integrating cutting-edge technologies, and adopting renewable energy sources to ensure efficient and environmentally responsible operations.
In 2024, Interactive, a leading Australian IT services provider, launched its first immersion cooling solution at its St Leonards data center in Sydney. This system enables high-performance computing (HPC) workloads that are challenging to cool with traditional air methods. By submerging servers in a non-conductive liquid, the solution enhances energy efficiency and supports the growing demands of AI and HPC applications.
Centuria Capital acquired a 50% stake in Reset Data, aiming to establish liquid immersion-cooled edge data centers across Australia. These centers are designed to be energy-efficient, with a lower carbon footprint, and can be integrated into existing office spaces. The technology, utilized by companies like Dell and Nvidia, offers efficient data storage without water waste, aligning with sustainability goals.
Rapid Expansion of AI-Ready Infrastructure in Regions Like Sydney and Melbourne to Support Growing AI Workloads
Sydney's data centre market is experiencing a boom, fueled by an insatiable appetite for cloud services, AI, and other data-centric technologies. As a premier global hub for hyperscale infrastructure, Sydney stands at the crossroads, needing avant-garde, sustainable solutions to satiate this demand. DIG's envisioned facility is set to deliver the high-performance infrastructure essential for propelling Sydney's next digital evolution.
\Doma Infrastructure Group (DIG) has unveiled plans for a cutting-edge, AI-ready data centre in West Sydney. With Development Application approvals secured, the facility is set to boast a capacity of 50 to 60 MW of high-density power. This move comes in response to the escalating demand for hyperscale cloud infrastructure and advanced AI computing. Aiming to position Sydney as a leader in the global digital economy, this premier data centre is poised to be instrumental in shaping the city's tech-centric future.
For Instance, in July 2024, Equinix is investing USD 240 million to expand its SY5 (Sydney) and ME2 (Melbourne) data centers. This expansion will add 4,175 cabinets, addressing the growing demand for AI workloads in the region. To accommodate high-density AI hardware, Equinix is set to introduce advanced liquid cooling technologies, including direct-to-chip cooling systems. The implementation of these technologies is scheduled to begin in the second half of 2024, ensuring the infrastructure can support the increasing computational requirements driven by AI advancements.
Australia Artificial Intelligence (AI) Optimised Data Center Industry Overview
Australia's AI data center market is evolving rapidly, driven by the growing demand for advanced digital infrastructure to support AI, cloud computing, and other technologies. Key players, including Intel Corporation, Advanced Micro Devices, Inc., Cisco Systems, Schneider Electric Industries, and Vertiv Group Corp, are expanding capacities and adopting cutting-edge technologies to meet the rising needs of AI-centric applications. Additionally, the Australian government's initiatives to enhance AI capabilities are further propelling market growth, positioning Australia as a strong contender in the global AI data center landscape.
In May 2025, Schneider Electric is revolutionizing AI data centers by integrating advanced liquid cooling technologies, AI-driven predictive maintenance, and scalable power solutions. The company’s AI-based platform analyzes real-time equipment performance, enabling proactive maintenance and optimizing cooling systems to enhance energy efficiency. These innovations position Schneider Electric as a leader in creating sustainable, high-performance data center solutions tailored to meet the increasing demands of AI workloads.
Australia Artificial Intelligence (AI) Optimised Data Center Market Leaders
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Intel Corporation
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Advanced Micor Devices, Inc
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Cisco Systems
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Schneider Electric Industries
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Vertiv Group Corp
- *Disclaimer: Major Players sorted in no particular order
Australia Artificial Intelligence (AI) Optimised Data Center Market News
- May 2025: Nokia has been selected by CoreSite, an American Tower company, to deploy an IP routing-based edge and core network solution across 30 data centers in 11 major US markets. This upgrade aims to meet the growing demand for cloud connectivity and data-intensive workloads, particularly in artificial intelligence (AI) and high-performance computing. CoreSite, supporting nearly 40,000 customer interconnections, will leverage Nokia's 7250 Interconnect Router (IXR-s) and 7750 Service Router (SR), powered by FP5 silicon, to enhance scalability, performance, and reliability across its enterprise, cloud, and carrier customer base.
- May 2025: Australia attracted $6.7 billion in data center investments in 2024, making it the second-largest investment location globally after the United States. The increasing adoption of AI workloads and digital transformation efforts drives the growth. The country’s exemption on export restrictions for AI chips is drawing significant interest, while regulatory challenges and adapting to US export controls remain critical. Rising demand for ultra-high-density deployments and energy-efficient designs is positioning cities like Melbourne and Perth as key hubs. Local industries, including IT services, real estate, and energy technologies, are expected to support this growth, with government involvement needed to streamline approvals and upgrade power grids.
Australia Artificial Intelligence (AI) Optimised Data Center Industry Segmentation
The research encompasses the full spectrum of AI applications in data centers, covering hyperscale, colocation, enterprise, and edge facilities. The analysis is segmented by component, distinguishing between hardware and software. Hardware considerations include power, cooling, networking, IT equipment, and more. Software technologies under scrutiny encompass machine learning, deep learning, natural language processing, and computer vision. The study also evaluates the geographical distribution of these applications.
Additionally, it assesses AI's influence on sustainability and carbon neutrality objectives. A comprehensive competitive landscape is presented, detailing market players engaged in AI-supportive infrastructure, encompassing both hardware and software utilized across various AI data center types. Market size is calculated in terms of revenue generated by products and solutions providers in the market, and forecasts are presented in USD Billion for each segment.
| By Data Center Type | CSP Data Centers | ||
| Colocation Data Centers | |||
| Others (Enterprise and Edge) | |||
| By Component | Hardware | Power | |
| Cooling | |||
| IT Equipments | |||
| Others | |||
| Software Technology | Machine Learning | ||
| Deep Learning | |||
| Natural Language Processing | |||
| Computer Vision | |||
| Services - (Managed Services, Proffesional Services, etc) | |||
| CSP Data Centers |
| Colocation Data Centers |
| Others (Enterprise and Edge) |
| Hardware | Power |
| Cooling | |
| IT Equipments | |
| Others | |
| Software Technology | Machine Learning |
| Deep Learning | |
| Natural Language Processing | |
| Computer Vision | |
| Services - (Managed Services, Proffesional Services, etc) |
Australia Artificial Intelligence (AI) Optimised Data Center Market Research FAQs
How big is the Australia Artificial Intelligence Optimised Data Center Market?
The Australia Artificial Intelligence Optimised Data Center Market size is expected to reach USD 178.70 million in 2025 and grow at a CAGR of 20.23% to reach USD 448.90 million by 2030.
What is the current Australia Artificial Intelligence Optimised Data Center Market size?
In 2025, the Australia Artificial Intelligence Optimised Data Center Market size is expected to reach USD 178.70 million.
Who are the key players in Australia Artificial Intelligence Optimised Data Center Market?
Intel Corporation, Advanced Micor Devices, Inc, Cisco Systems, Schneider Electric Industries and Vertiv Group Corp are the major companies operating in the Australia Artificial Intelligence Optimised Data Center Market.
What years does this Australia Artificial Intelligence Optimised Data Center Market cover, and what was the market size in 2024?
In 2024, the Australia Artificial Intelligence Optimised Data Center Market size was estimated at USD 142.55 million. The report covers the Australia Artificial Intelligence Optimised Data Center Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Australia Artificial Intelligence Optimised Data Center Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Australia Artificial Intelligence (AI) Optimised Data Center Industry Report
Statistics for the 2025 Australia Artificial Intelligence (AI) Optimised Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Australia Artificial Intelligence (AI) Optimised Data Center analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
