Australia Data Center Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)

Australia Data Center Construction Market is segmented by Tier Type (Tier 1 and 2, Tier 3, and Tier 4), by Data Center Size (Small, Medium, Large, Massive, and Mega), by Infrastructure (Cooling Infrastructure (Air-based Cooling, Liquid-based Cooling, Evaporative Cooling), Power Infrastructure (UPS Systems, Generators, Power Distribution Unit (PDU), Racks and Cabinets, Servers, Networking Equipment, Physical Security Infrastructure, Design and Consulting Services, and Other Infrastructure), and End User ( IT & Telecommunication, BFSI, Government, Healthcare, and Other End User). The market sizes and forecasts are provided in values of USD for all the above segments.

Australia Data Center Construction Market Size

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Australia Data Center Construction Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 6.73 %
Market Concentration Medium

Major Players

Australia Data Center Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Australia Data Center Construction Market Analysis

Australia data center construction market is projected to register a CAGR of 6.73% during the forecast period. The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.

  • Government initiatives like the Australia Government Information Management Office (AGIMO) are leading the way in optimizing data center resources with the introduction of the Australia Government Data Centre Strategy 2010-2025. The strategy represents a transition from using government-run data centers to third-party, multi-tenant data centers.
  • The data center providers are also increasingly investing or adopting an acquisition strategy to expand their capacity. For instance, Metronode's data center assets acquisition by Equinix provided the company with additional capacity to capture the benefits of scale and added approximately 20,000 square meters of gross colocation space to Equinix's footprint in Australia.
  • There has been robust development of new data centers which use renewable energies. For instance, during the second wave of the pandemic, 3 data centers as part of Project Koete were proposed for Western Australia and Northern Territory by the Australian company Fibre Expressway. The tier IV standard data centers with an initial capacity of 20 MW each were constructed in partnerships with wind, solar, and long-term ocean and clean hydrogen providers to satisfy 100% renewable energy access over time. Such projects propel the market's growth in Australia.
  • There is a lot of concern about cybersecurity, especially when it comes to digital access and who can connect with a server and its data. Nevertheless, maintaining physical security might be quite difficult. Even in a secure environment, anyone with the necessary access can damage or utilize servers. Data centers need to be safeguarded against potential catastrophes like water leaks, fires, and cooling system failures, which are very expensive and restrict the growth of the data center market in the country.
  • The COVID-19 outbreak increased the demand for cloud computing in the country; and it also expanded the scope of the data center market. The data center construction projects mostly continued as construction is classified as essential under the current Australian regime and is the vital sector to keep the country's economy running. However, the market also witnessed supply chain disruptions with the labor shortage, expecting a delay in the completion of several projects.

Australia Data Center Construction Market Trends

Tier 3 is the Largest Tier Type

  • Australia has no Tier 1 & 2 certified facilities. The Tier 3 segment of the Australian data center market reached an IT load capacity of 1,185.7 MW in 2021. It is anticipated to grow from 1,616.26 MW in 2022 to 2,615.6 MW by 2029 while recording a CAGR of 7.12%. The Tier IV data center segment reached an IT load capacity of 123 MW in 2021. The capacity is anticipated to grow from 185 MW in 2022 and reach 517 MW by 2029 while recording a CAGR of 15.81%.
  • Tier 3 and 4 data centers are expected to showcase significant growth in the Australian data center market. Tier 3 data centers offer uptime of 99.98%, with N+1 redundancies, which makes them preferable for the highest number of businesses. However, providers are getting the Tier 4 certification for their new facilities. For instance, NextDC's data center in Brisbane has become the first in the country to receive a Tier 4 constructed facility certification from Uptime Institute.
Australia Data Center Market, CAGR, %, By Tier Type, 2023-2029

Telecom is Anticipated to Hold the Highest Market Share

  • The Australian telecommunications industry is witnessing significant change. The telecom industry in Australia consists of three major carriers and an infrastructure provider, National Broadband Network (NBN), which provides fiber and fixed-line networks. Vendors mounting their technology on the towers are Telstra, Optus, and TPG, formerly known as VHA, plus NBN.
  • Currently, Australia has deployed 5G in major cities and is in the process of auctioning off the spectrum to provide more services. This will increase the need for towers. In April 2021, the government allocated a high band 5G spectrum (in the 26 GHz band), which will enable extremely fast, high-capacity services. In the second half of 2021, the government allocated a low band 5G spectrum (in the 850/900 MHz band), which will be crucial for ensuring broader geographic coverage of 5G services. This will enable new applications for 5G in the enterprise market that take advantage of 5G's unique properties like ultra-low latency, high capacity, and advanced functions like network slicing.
  • In 2022, the availability of 5G in Australia increased through famous telecom players like Telstra, Vodafone, and Optus. According to OpenSignal, Telstra had the highest 5G availability of the operators. Telstra customers with a 5G enabled device could obtain a 5G connection 17.5 percent of the time, whereas Optus customers could only connect 8.7 percent of the time.
  • In line with recent investments and acquisitions, the telecom segment of the Australian data center market is expected to grow. In June 2022, OMERS Infrastructure, which recently acquired the telecommunication tower assets of TPG Telecom, is making another tower investment in Australia. OMERS Infrastructure announced that it had agreed to buy Stilmark, a developer, owner, and operator of mobile tower assets. The consolidated towers business will also be part of OMERS Infrastructure's global portfolio of digital infrastructure assets. The telecom segment of the Australian data centers market is expected to grow significantly in order to meet the growing demand and increase dependency on data centers.
Australia Data Center Construction Market: Availability of 5G in Australia as of March 2022, by operator

Australia Data Center Construction Industry Overview

Australia data center construction market is fairly consolidated, with the top five companies occupying the majority of the market share. Some of the major companies are Icon Co, Eaton Corporation plc, Schneider Electric SE, Servers Australia, and AECOM.

In July 2023, Microsoft announced plans to build a data center campus in Sydney, Australia. The company announced investing USD 1.3 billion for 14.4 hectares of two-story data center building. The data centers are expected to offer an IT load capacity of 96MW, with the potential to expand to 190MW with another building.

In August 2022, Leaseweb Global announced that it is expanding its Asia Pacific presence with the opening of three new data centers in Tokyo, Singapore, and Sydney before the end of the year. When the additional locations launch, Leaseweb will operate a total of nine data centers across the region.

Australia Data Center Construction Market Leaders

  1. Icon Co

  2. Eaton Corporation plc

  3. Schneider Electric SE

  4. Servers Australia

  5. AECOM

*Disclaimer: Major Players sorted in no particular order

Australia Data Center Construction Market Concentration
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Australia Data Center Construction Market News

  • August 2022: Equinix announced that it completed the USD 15.7 million expansion of its second Melbourne data center. First opened in February 2020, the ME2 site in Port Melbourne acquired 500 new cabinets, increasing the facility's total to 1,500 cabinets and colocation space covering 4,070 square meters (43,800 sq ft). The data center is planned to eventually span over 8,200 square meters (88,150 sq ft) and will house 3,000 cabinets.
  • August 2022: Canberra Data Centres announced that it has signed a new 10-year deal with the Defence last month. The USD 91.5 million Defence contract is double the value of its previous most lucrative contract with the big spending department, and was revealed through public tender documents.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumption & Market Definition

    2. 1.2 Scope of the Study

  2. 2. Research Methodology

  3. 3. Executive Summary

  4. 4. Market Dynamics

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Increasing Rate of Data Traffic

      2. 4.2.2 Adoption of Colocation Services For Cost Effective Solution

      3. 4.2.3 Thriving Digital Transformations Fueling Data Center Demand

    3. 4.3 Market Restraints

      1. 4.3.1 Limitations on Data Security Features

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Assessment of COVID-19 Impact

  5. 5. Key Industry Statistics

    1. 5.1 Planned/Under Construction IT Load Capacity

    2. 5.2 Planned/Under Construction Raised Floor Space

    3. 5.3 Planned/Under Construction Submarine Cable

  6. 6. MARKET SEGMENTATION

    1. 6.1 Tier Type

      1. 6.1.1 Tier 1 and 2

      2. 6.1.2 Tier 3

      3. 6.1.3 Tier 4

    2. 6.2 Data Center Size

      1. 6.2.1 Small

      2. 6.2.2 Medium

      3. 6.2.3 Large

      4. 6.2.4 Mega

      5. 6.2.5 Massive

    3. 6.3 Infrastructure

      1. 6.3.1 Cooling Infrastructure

        1. 6.3.1.1 Air-based Cooling

        2. 6.3.1.2 Liquid-based Cooling

        3. 6.3.1.3 Evaporative Cooling

      2. 6.3.2 Power Infrastructure

        1. 6.3.2.1 UPS Systems

        2. 6.3.2.2 Generators

        3. 6.3.2.3 Power Distribution Unit (PDU)

      3. 6.3.3 Racks and Cabinets

      4. 6.3.4 Servers

      5. 6.3.5 Networking Equipment

      6. 6.3.6 Physical Security Infrastructure

      7. 6.3.7 Design and Consulting Services

      8. 6.3.8 Other Infrastructure

    4. 6.4 End-User

      1. 6.4.1 IT & Telecommunication

      2. 6.4.2 BFSI

      3. 6.4.3 Government

      4. 6.4.4 Healthcare

      5. 6.4.5 Other End User

  7. 7. COMPETITIVE LANDSCAPE

  8. 8. Company Profiles

    1. 8.1 AECOM

    2. 8.2 NTT Ltd.

    3. 8.3 Fortis Construction

    4. 8.4 Servers Australia

    5. 8.5 SAS Institute Inc.

    6. 8.6 Schneider Electric SE

    7. 8.7 Over the Wire Holdings Limited

    8. 8.8 Colocity Pty Ltd

    9. 8.9 Syncom Australia Pty Ltd

    10. 8.10 Arista Networks

    11. 8.11 Iris Global

    12. 8.12 Icon Co

    13. 8.13 Eaton Corporation plc

    14. 8.14 Dell Inc.

    15. 8.15 Cisco Systems Inc.

  9. *List Not Exhaustive
  10. 9. INVESTMENT ANALYSIS

  11. 10. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Australia Data Center Construction Industry Segmentation

Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.

Australia Data Center Construction Market is segmented by Tier Type (Tier 1 and 2, Tier 3, and Tier 4), by Data Center Size (Small, Medium, Large, Massive, and Mega), by Infrastructure (Cooling Infrastructure (Air-based Cooling, Liquid-based Cooling, Evaporative Cooling), Power Infrastructure (UPS Systems, Generators, Power Distribution Unit (PDU), Racks and Cabinets, Servers, Networking Equipment, Physical Security Infrastructure, Design and Consulting Services, and Other Infrastructure), and End User ( IT & Telecommunication, BFSI, Government, Healthcare, and Other End User). The market sizes and forecasts are provided in values of USD for all the above segments.

Tier Type
Tier 1 and 2
Tier 3
Tier 4
Data Center Size
Small
Medium
Large
Mega
Massive
Infrastructure
Cooling Infrastructure
Air-based Cooling
Liquid-based Cooling
Evaporative Cooling
Power Infrastructure
UPS Systems
Generators
Power Distribution Unit (PDU)
Racks and Cabinets
Servers
Networking Equipment
Physical Security Infrastructure
Design and Consulting Services
Other Infrastructure
End-User
IT & Telecommunication
BFSI
Government
Healthcare
Other End User
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Frequently Asked Questions

The Australia Data Center Construction Market is projected to register a CAGR of 6.73% during the forecast period (2024-2029)

Icon Co, Eaton Corporation plc, Schneider Electric SE, Servers Australia and AECOM are the major companies operating in the Australia Data Center Construction Market.

The report covers the Australia Data Center Construction Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Australia Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Australia Data Center Construction Industry Report

Statistics for the 2024 Australia Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Australia Data Center Construction analysis includes a market forecast outlook to for 2024 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Australia Data Center Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)