Press release
Australia Data Center Market Size to Reach USD 9.02 Billion by 2031 - Arizton
To Know More, Click: https://www.arizton.com/market-reports/australia-data-center-market-investment-analysis
Australia Data Center Market Snapshot:
MARKET SIZE (INVESTMENT): USD 9.02 Billion (2031)
MARKET SIZE (AREA): 2,328 Thousand Sq. feet (2031)
MARKET SIZE (POWER CAPACITY): 582 MW (2031)
CAGR - INVESTMENT (2025-2031): 13.52%
COLOCATION MARKET SIZE (REVENUE): USD 5.60 Billion (2031)
HISTORIC YEAR: 2022-2024
BASE YEAR: 2025
FORECAST YEAR: 2026-2031
Australia Data Center Market by Area: Sydney-Melbourne Drive Capacity Growth
Australia's data center market is expanding in response to rising digital infrastructure demand and limited availability of suitable industrial land. Average industrial land prices typically range between USD 500-800 per square meter, pushing operators to secure large parcels early to support long-term capacity growth. Sydney and Melbourne remain the core expansion hubs, with leading players continuing to announce new developments and upgrades. At the same time, Australia is strengthening its strategic connectivity footprint, highlighted by Google's proposed subsea cable-linked data center project on Christmas Island, which underscores the country's growing focus on secure and resilient digital infrastructure.
Australia Cloud Adoption Fuels Long-Term Data Center Demand
Australia is strengthening its position as a high-value data center and cloud investment market, underpinned by enterprise-led and government-driven cloud adoption. Organizations are accelerating migration to hyperscale cloud platforms to enhance productivity, optimize IT costs, and deploy AI- and ML-enabled workloads, directly increasing demand for scalable, secure data center infrastructure. This structural demand is reinforced by public-sector modernization. In September 2025, Australia's Department of Foreign Affairs and Trade initiated a multi-year cloud migration program as part of a USD 69.86 million digital transformation investment, signaling sustained long-term demand for modern cloud and colocation services.
Subsea Cable Expansion Strengthens Australia's Data Center Connectivity
Australia's data center and digital infrastructure market is being strengthened by rapid expansion in submarine cable connectivity. The country currently hosts 21 active subsea cable systems, with eight additional cables scheduled between 2026 and 2028, supporting higher bandwidth, lower latency, and rising demand for cloud services and data-intensive workloads. Cable landings are strategically concentrated in Sydney and Perth, reinforcing their role as primary connectivity and data center hubs, while emerging landing points such as the Sunshine Coast and Darwin are expanding network reach. This momentum is highlighted by Google's TalayLink subsea cable project, announced in November 2025, which will connect Australia and Thailand to enhance network resilience and cross-border data flows across the APAC region, further supporting long-term data center investment growth.
AI-Ready Infrastructure Signals Australia's Next Data Center Cycle
Australia's data center market is being reshaped by accelerating demand for artificial intelligence, cloud computing, and high-performance digital infrastructure, as enterprises focus on productivity gains and operational efficiency. This demand is reinforced by government-led digital transformation, including pilot adoption of AI-based solutions across public services. Long-term market momentum is supported by the Australian government's USD 1.7 billion commitment under the 2024-2025 Federal Budget to strengthen innovation and national digital capabilities. On the infrastructure front, AI-ready hyperscale capacity is beginning to emerge, exemplified by the WA1 data center in Perth developed by GreenSquareDC, which is purpose-built to support AI and large language model workloads through advanced cooling technologies.
Download a FREE PDF Sample of the Report: https://www.arizton.com/request-sample/5046
Australia Data Center Market Segmentation & Forecast includes:
IT Infrastructure
• Servers
• Storage Systems
• Network Infrastructure
Electrical Infrastructure
• UPS Systems
• Generators
• Transfer Switches & Switchgears
• PDUs
• Other Electrical Infrastructure
Mechanical Infrastructure
• Cooling Systems
• Rack Cabinets
• Other Mechanical Infrastructure
Cooling Systems
• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers & Dry Coolers
• Other Cooling Units
General Construction
• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Fire Detection & Suppression Systems
• Physical Security
• Data Center Infrastructure Management (DCIM)
Tier Standard
• Tier I & Tier II
• Tier III
• Tier IV
Geography
• Sydney
• Melbourne
• Other Cities
Vendor Landscape
IT Infrastructure Providers
• Arista Networks
• Atos
• Broadcom
• Cisco
• Dell Technologies
• Extreme Networks
• Hewlett Packard Enterprise
• Hitachi Vantara
• IBM
• Lenovo
• Oracle
• Pure Storage
• Quanta Cloud Technology
• Supermicro
Data Center Construction Contractors & Sub-Contractors
• AECOM
• Apollo
• A W Edwards
• Aurecon
• Benmax
• BESIX Watpac
• BGIS
• Cundall
• DEM
• Erilyan
• FDC Construction & Fitout
• FKG Group
• Greenbox Architecture
• Green Civil
• HDR
• Hindmarsh
• Hutchinson Builders
• Icon Construction
• ISG
• John Holland
• Kapitol Group
• Linesight
• Manteena Group
• Mecone
• Nilsen
• Paramount Airconditioning
• Parratech
• SCEE Group
• Stowe Australia
• Taylor Construction
• TTW
• WT
Support Infrastructure Providers
• ABB
• Airedale
• Alfa Laval
• Bosch
• Canovate
• Caterpillar
• Condair Group
• Cummins
• Delta Electronics
• Eaton
• Everett-Smith
• Green Revolution Cooling
• HITEC Power Protection
• Kohler Power
• Legrand
• Mitsubishi Electric
• Piller Power Systems
• Rittal
• Rolls-Royce
• Schneider Electric
• STULZ
• Thycon
• Vertiv
Data Center Investors
• G Networks
• AirTrunk
• Amazon Web Services
• CDC Data Centres
• DC Two
• DCI Data Centers
• Digico
• Digital Realty
• Equinix
• Edge Centres
• Fujitsu
• Global Switch
• Leading Edge Data Centres
• Keppel Data Centres
• Macquarie Data Centres
• Microsoft
• NEXTDC
• NTT DATA
• STACK Infrastructure
• Stockland
New Entrants
• Doma Infrastructure Group
• Goodman
• GreenSquareDC
• Supernode
• Trifalga
• Vantage Data Centers
• EdgeConneX
• ISPT
Related Reports That May Align with Your Business Needs
New Zealand Data Center Market - Investment Analysis & Growth Opportunities 2026-2031
https://www.arizton.com/market-reports/new-zealand-data-center-market
Indonesia Data Center Market - Investment Analysis & Growth Opportunities 2026-2031
https://www.arizton.com/market-reports/indonesia-data-center-market-analysis-2026
What Key Findings Will Our Research Analysis Reveal?
• How big is the Australia data center market?
• How much MW of power capacity will be added across Australia during 2026-2031?
• What factors are driving the Australia data center market?
• Which all geographies are included in Australia center market report?
About Us:
Founded in 2017, Arizton Advisory & Intelligence delivers data-driven market research and strategic consulting that empowers clients to make informed decisions and drive growth. Combining quantitative and qualitative insights, we provide in-depth analysis across industries including Agriculture, Consumer Goods, Technology, Automotive, Healthcare, Data Centers, and Logistics. Recognized by top-tier media, our expert team transforms complex market data into actionable strategies, helping clients anticipate trends, seize opportunities, and stay ahead of the competition.
Contact Us
Mail: enquiry@arizton.com
Contact Us: https://www.arizton.com/contact-us
Website: https://www.arizton.com/
Call: +1 312-680-2940
Source: Arizton Advisory & Intelligence
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