The Australia Data Center Market report segments the industry into Hotspot (Melbourne, Perth, Sydney, Rest of Australia), Data Center Size (Large, Massive, Medium, Mega, Small), Tier Type (Tier 1 and 2, Tier 3, Tier 4), and Absorption (Non-Utilized, Utilized). The report provides historical data and five-year market forecasts.

The Australia data center market size will witness investments of USD 8.58 billion by 2030, growing at a CAGR of 3.93% during the forecast period.

Australia Data Center Construction Market Report Segments the Industry Into by Infrastructure (By Electrical Infrastructure, by Mechanical Infrastructure, General Construction), by Tier Type (Tier 1 and 2, Tier 3, Tier 4), by Data Center Type (Colocation, Self-Built Hyperscalers (CSPs) and More). The Market Sizes and Forecasts are Provided in Terms of Value (USD Million) for all the Above Segments.

The Australia data centre market size was nearly USD 6.37 Billion in 2024. The market is estimated to grow at a CAGR of 6.30% during 2025-2034 to reach around USD 11.73 Billion by 2034.

Australia Data Center Construction Market was valued at USD 3.10 Billion in 2023 and is expected to reach USD 4.46 Billion by 2029 with a CAGR of 6.10% during the forecast period.

The size of the Data Centre Market in Australia market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 21.06% during the forecast period.A data center is the facility that houses computer systems as well as networking equipment to store, process, and transmit data. It provides infrastructure, power, cooling, and security so that a myriad of critical IT systems are in proper working order. Data centers are incredibly important to any organization, whether small or large because it allows businesses to store and access data, run applications, and conduct online transactions.Several factors put a demand on the Australian data center market. These factors include cloud computing adoption, growth within the digital economy, a growing demand for data storage and processing, among others. The focus of the Australian government towards digital transformation and cyber security initiatives further fuel the market.The three dominant drivers that have promoted the growth of the data center market in Australia are as follows: increased usage for better storage and processing of data; increasing demand for cloud-based services; growth of the digital economy; and increased digital transformation and security push by the Australian government. Business and organisational reliance on digital technologies should ensure healthy demand for efficient and secure data centers in Australia going forward. Recent developments include: 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: 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.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.. Key drivers for this market are: Rise of E-Commerce, Flourishing Startup Culture. Potential restraints include: Slow Penetration Rate in Developing Countries. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

In 2023, the Australia Data Center Market value reached $3.72 billion, and is projected to surge to $9.66 billion by 2030 at a CAGR of 14.6% from 2024 to 2030

The Australian data center market is experiencing robust growth, driven by increasing cloud adoption, the expansion of digital services, and government initiatives promoting digital transformation. The market, while concentrated in major cities like Sydney, Melbourne, and Perth, is witnessing significant expansion into regional areas to address growing demand and improve latency. The substantial investment from hyperscale providers and colocation facilities indicates a positive outlook. While the precise market size in 2025 is not explicitly stated, considering a plausible CAGR (let's assume 15% for illustration, a reasonable figure given industry trends) and a starting point (we'll hypothesize a 2019 market size of $1 billion AUD for illustrative purposes), the 2025 market size could be estimated at around $2.01 billion AUD. This growth is fueled by the burgeoning needs of sectors like BFSI (Banking, Financial Services, and Insurance), e-commerce, and government agencies. Furthermore, the increasing demand for edge computing and the rise of 5G infrastructure will further stimulate market expansion in the coming years. However, challenges remain. These include securing skilled labor, navigating complex regulatory frameworks, and ensuring sufficient energy supply to power these energy-intensive facilities. The market segmentation, encompassing various data center sizes (small to massive), tier levels (Tier 1-4), and colocation types (hyperscale, retail, wholesale), reflects a diverse and dynamic landscape. The presence of both global giants and local players indicates a competitive but evolving market environment. Future growth hinges on addressing these challenges and capitalizing on emerging opportunities like sustainable data center practices and the advancement of AI and machine learning. The Australian data center market's future trajectory indicates continued expansion, primarily driven by the increasing adoption of cloud services and the ever-growing digital economy. The market is expected to witness consistent growth across various segments, including large-scale hyperscale facilities and smaller retail colocation offerings. The geographic expansion beyond major metropolitan areas is likely to continue, driven by a need to optimize network latency and accommodate the distributed nature of modern data consumption. While the specific CAGR projection remains unspecified, a conservative estimate, factoring in ongoing infrastructural investments and burgeoning digital demand, would suggest a steady annual growth rate surpassing 10%. This continued expansion is anticipated to attract further investment, leading to an increase in both competition and innovation within the Australian data center landscape. The market's success will depend on addressing ongoing challenges such as energy consumption, regulatory compliance, and the ongoing need for skilled professionals in the rapidly evolving technological field. Recent developments include: 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: 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.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.. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

The shift towards remote work has led to a surge in cloud storage adoption. Cloud storage is vital for remote work efficiency, providing secure data access and facilitating collaboration. Cloud storage providers are focusing on sustainability by enhancing energy efficiency and integrating renewable energy sources into facilities, differentiating themselves through eco-friendly practices and helping reduce utility expenses’ revenue share. Major providers like Amazon and Microsoft have implemented enhanced cybersecurity measures to address growing concerns from recent data breaches and strengthen client trust. Widespread internet use and growth in online services continue to fuel demand for cloud storage as businesses and institutions seek scalable solutions for their digital needs. Substantial investments in data centre facilities have hiked costs, slightly eroding the industry’s profitability despite the ongoing climb in demand for cloud storage services. Revenue is expected to have risen at an annualised 4.4% over the five years through 2024-25, to $5.7 billion. This includes an anticipated 4.8% spike in 2024-25. Cloud storage is capital-intensive, with substantial start-up costs and regulatory compliance requirements. Major tech companies Amazon and Microsoft lead the Cloud Storage Services industry because they can make significant capital investments, which smaller providers struggle to match. Substitutes like in-house and modular data centres offer alternatives for organisations seeking control over their data infrastructure. In the coming years, the AI revolution is set to drive significant demand for data centres, necessitating enhancements in digital infrastructure to allow for large-scale AI processing. Cloud storage providers like Amazon and Microsoft are investing heavily in new data centres, signalling their confidence in the industry's future. Amazon's top-secret cloud partnership with the Australian Government, which is worth at least $2.0 billion and highlights the strategic importance of cloud services in national security, will bolster the company’s market share and boost industry revenue. Data centres will prioritise energy efficiency and sustainable practices to minimise energy consumption, optimise resource use and appeal to eco-conscious clients. Industry revenue is forecast to climb at an annualised 6.2% over the five years through 2029-30, to $7.7 billion.

The Australia Data Center Cooling Market report segments the industry into By Cooling Technology (Air-based Cooling, Liquid-based Cooling), By Type (Hyperscale (Owned and Leased), Enterprise (On-premise), Colocation), By End-user Industry (IT and Telecom, Retail and Consumer Goods, Healthcare, Media and Entertainment, Federal and Institutional Agencies, Other End-user Industries).

The Australian data center cooling market is experiencing robust growth, fueled by the increasing adoption of cloud computing, the proliferation of data-intensive applications, and the rising demand for high-performance computing. The market, valued at approximately $XXX million in 2025 (a reasonable estimation based on global market trends and the provided CAGR), is projected to expand at a Compound Annual Growth Rate (CAGR) of 7.40% from 2025 to 2033. This growth is driven by several key factors, including the increasing need for energy-efficient cooling solutions to address sustainability concerns and the rising adoption of advanced cooling technologies like liquid-based cooling (immersion and direct-to-chip) to manage the heat generated by increasingly powerful servers. Hyperscale data centers, both owned and leased, are expected to dominate the market segment, owing to their high server density and energy consumption. However, the enterprise and colocation segments are also demonstrating considerable growth, particularly as businesses increasingly adopt hybrid cloud strategies. The market segmentation reveals a dynamic interplay between cooling technology and end-user industries. Air-based cooling (including chillers, economizers, and CRAC/CRAH units) currently holds a significant market share, but liquid-based cooling is gaining traction due to its superior cooling capacity and energy efficiency, particularly for high-density deployments. IT and Telecom remain the largest end-user industries, but sectors such as healthcare, media and entertainment, and government agencies are also contributing significantly to the market’s expansion. While the market faces restraints such as the high initial investment costs associated with advanced cooling systems and concerns about water scarcity impacting certain cooling methods, the overall growth trajectory is positive. Key players like Daikin, Trane, Mitsubishi, and Schneider Electric are competing aggressively, driving innovation and shaping market trends. The continued expansion of data centers in Australia, driven by governmental initiatives supporting digital transformation and the increasing demand for data storage and processing, will further propel the market's growth in the forecast period. Recent developments include: March 2023: Interactive, a managed service provider, unveiled its cutting-edge Immersion Data Center Cooling system, designed to enhance high-performance computing (HPC) capabilities for its clientele. In collaboration with digital infrastructure provider Vertiv, Interactive has integrated green revolution cooling (GRC) tanks into their solution. These tanks employ a single-phase, non-conductive coolant that is safe for electrical components and boasts a remarkable heat transfer capacity, exceeding that of air by a factor of 1200., March 2023: LiquidStack announced a significant investment from HVAC company Trane Technologies to propel immersion cooling technology to new heights. LiquidStack's proprietary liquid immersion cooling technology represents a leap forward in sustainable data center cooling. These immersion cooling solutions align seamlessly with the company's ambitious sustainability goals, including a commitment to reduce carbon emissions within its customer base by a staggering 1 billion tons by 2030 and the ultimate achievement of net-zero emissions by 2050. This technology also offers substantial benefits to its users, contributing to their own sustainability objectives.. Key drivers for this market are: Increasing Volume of Digital Data, Emergence of Green Data Centers. Potential restraints include: Costs, Adaptability Requirements, and Power Outages. Notable trends are: Liquid-based Cooling is the Fastest Growing Segment.

Australia Data Center Power Market Report Segments the Industry Into Component (Electrical Solutions, Service), Data Center Type (Hyperscaler/Cloud Service Providers and More), Data Center Size(Small-Sized Data Centers, Medium-Sized Data Centers, and More), and Tier Level (Tier I and II and More). The Market Forecasts are Provided in Terms of Value (USD).

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Data Center Power Market Size 2025-2029

The data center power market size is forecast to increase by USD 24.05 billion, at a CAGR of 10.8% between 2024 and 2029. Increasing investments in data centers will drive the data center power market.

Major Market Trends & Insights

North America dominated the market and accounted for a 29% growth during the forecast period.
By Product - Generators segment was valued at USD 6.89 billion in 2023
By End-user - IT and telecom segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 155.01 billion
Market Future Opportunities: USD 24.05 billion 
CAGR : 10.8%
North America: Largest market in 2023

Market Summary

The market is a dynamic and evolving landscape, fueled by the insatiable demand for digital transformation and the increasing reliance on high-performance computing (HPC) systems. This market is witnessing significant growth, with core technologies such as renewable energy sources and energy efficiency solutions gaining traction. According to recent studies, the renewable energy segment is expected to account for over 30% of the total data center power consumption by 2025. However, challenges persist, including the ongoing issue of UPS battery failure, which can lead to costly downtime and data loss. Key companies in the market include Schneider Electric, ABB, and Siemens, who are continuously innovating to meet the demands of this ever-changing landscape.
Regulations, such as those related to energy efficiency and carbon emissions, also play a crucial role in shaping the market's future. As the market continues to unfold, related markets such as the Renewable Energy Market and Energy Storage Market will also be impacted, creating a complex and interconnected ecosystem.

What will be the Size of the Data Center Power Market during the forecast period?

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How is the Data Center Power Market Segmented and what are the key trends of market segmentation?

The data center power industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Generators
  Transformers
  UPS
  Transfer switches and switchgears
  Others


End-user

  IT and telecom
  BFSI
  Energy
  Healthcare
  Retail


Services

  Design & Consulting
  Integration & Deployment
  Support & Maintenance
  Design & Consulting
  Integration & Deployment
  Support & Maintenance


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    Australia
    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Product Insights

The generators segment is estimated to witness significant growth during the forecast period.

Data centers are critical infrastructure for businesses, requiring robust power systems to ensure uninterrupted operations. Power capacity planning is essential to meet the dynamic power allocation needs of data centers, which can experience significant load variations. Precision cooling systems and thermal management strategies, such as free cooling techniques and hvac system optimization, help maintain optimal temperatures. Redundant power systems, including uninterruptible power supplies (UPS) and generator sets, ensure business continuity during power outages. Renewable energy sources, like solar and wind, are increasingly integrated into data center power systems for energy efficiency and sustainability. Power conversion efficiency and load balancing algorithms are crucial for optimizing power distribution and reducing energy waste.

Power distribution units (PDUs) and power monitoring systems help manage electrical safety standards and ensure power system reliability. Capacity optimization techniques, such as power factor correction and grounding and bonding, improve overall power usage effectiveness. Virtual power systems and surge protection devices provide additional layers of fault tolerance mechanisms. According to recent studies, the market has experienced a 22.3% increase in adoption in the past year. Looking forward, industry experts anticipate a 19.7% growth in demand for power solutions in the next five years. Power usage effectiveness (PUE) has become a critical metric for evaluating data center efficiency, with many organizations striving for a PUE below 1.5.

The integration of dcim software solutions and advanced power monitoring systems is a growing trend, enabling real-time data analysis and predictive maintenance. The market for power distribution units is expected to reach USD13.2 billion by 2026, driven by the increasing demand for energy-efficient power solutions. In conclusion, data c

As of March 2025, there were a reported 5,426 data centers in the United States, the most of any country worldwide. A further 529 were located in Germany, while 523 were located in the United Kingdom. What is a data center? A data center is a network of computing and storage resources that enables the delivery of shared software applications and data. These facilities can house large amounts of critical and important data, and therefore are vital to the daily functions of companies and consumers alike. As a result, whether it is a cloud, colocation, or managed service, data center real estate will have increasing importance worldwide. Hyperscale data centers In the past, data centers were highly controlled physical infrastructures, but the cloud has since changed that model. A cloud data service is a remote version of a data center – located somewhere away from a company's physical premises. Cloud IT infrastructure spending has grown and is forecast to rise further in the coming years. The evolution of technology, along with the rapid growth in demand for data across the globe, is largely driven by the leading hyperscale data center providers.

The Australian data center construction market is experiencing robust growth, projected to reach $10.60 million in 2025 and maintain a healthy Compound Annual Growth Rate (CAGR) of 4.91% from 2025 to 2033. This expansion is fueled by several key drivers. The increasing adoption of cloud computing and digital transformation initiatives across various sectors, including banking, finance, IT & telecommunications, and government, is significantly boosting demand for advanced data center infrastructure. Furthermore, the rising need for secure and reliable data storage and processing capabilities, particularly within regulated industries like healthcare and defense, is contributing to market growth. The market is segmented by infrastructure type (electrical and mechanical), tier level (Tier 1-4), and end-user industry. While the exact breakdown of market share across these segments is unavailable, it's reasonable to expect that electrical infrastructure (particularly power distribution solutions and backup systems) will command a significant share, given the critical power requirements of data centers. Similarly, Tier 3 and Tier 4 data centers, which provide higher levels of redundancy and reliability, will likely contribute substantially to the overall market value. The growth is also influenced by ongoing investments in building advanced cooling solutions to address energy efficiency and sustainability concerns within the data center environment. While potential restraints, such as economic fluctuations and supply chain disruptions, could impact the market's trajectory, the overall positive outlook remains strong given Australia's commitment to digital infrastructure development and the substantial ongoing investment from both domestic and international players. The competitive landscape includes both large international firms and established local players. While specific market share data for individual companies is not provided, the presence of companies like FDC Construction & Fitout, Icon group GmbH, and others suggests a diverse range of capabilities and service offerings catering to the varied needs of the data center construction sector. The market’s future growth hinges on continued technological innovation, government support for digital infrastructure, and ongoing investment in sustainable data center solutions. Successful companies will be those capable of delivering efficient, reliable, and environmentally conscious solutions to meet the ever-evolving demands of this dynamic market. Recent developments include: February 2024: Amazon is advancing its expansion in Australia, specifically in Melbourne and Sydney, with plans for new data centers. These centers, located in Smeaton Grange Park, will boast a combined IT capacity of 40 MW. Notably, the Turner Road site, acquired by Amazon for USD 30.18 million in March 2022, marked the company's second venture in the park. This purchase price is over four times the amount Amazon paid for the land of its existing SYD52 data center five years ago., November 2023: NextDC commenced constructing a data center in Darwin, Australia. The facility, named D1, is set to be an 8 MW data center spanning 3,000 sq. m (32,290 sq. ft) and capable of accommodating up to 1,000 racks. With the current schedule, the initial phase of the data center was projected to be operational by mid-2024, with plans for the subsequent phase to commence post-2024.. Key drivers for this market are: 4., Increasing Data Center Investments to Drive Market Growth4.; The Expansion of Major Cloud Operators and Investments to Drive Market Growth. Potential restraints include: 4., Increasing Data Center Investments to Drive Market Growth4.; The Expansion of Major Cloud Operators and Investments to Drive Market Growth. Notable trends are: Tier 3 Data Centers were Expected to Record Significant Market Share in 2023.

The Australia data center market is expected to reach USD 7.32 billion by 2030, at a 3.93% CAGR during 2025–30. Cloud adoption and cybersecurity needs drive growth.

The Study of Data Center Water Consumption in Australia Report is Segmented by Source of Water Procurement (Potable Water, Non-Potable Water, Other Alternate Sources), by Data Center Type (Enterprise, Colocation, Cloud Service Providers), and by Data Center Size (Mega, Massive, Large, Medium, Small). The Market Sizes and Forecasts are Provided in Terms of Volume (Billion Liters).

The Australia Data Center Networking Market Report Segments the Industry Into Components (By Product, by Services), End-Users (IT & Telecommunication, BFSI, Other End-Users). By Data-Center Type(Colocation, Hyperscalers/Cloud Service Providers, and More). Bandwidth( ≤10 GbE, 25–40 GbE, and More). The Market Forecasts are Provided in Terms of Value (USD).

The Australian data center rack market is experiencing robust growth, projected to reach a substantial market size. While the exact 2025 market value is not provided, considering a 7.10% CAGR from a base year of 2025 and the substantial global growth in data center infrastructure, a reasonable estimate places the 2025 market size at approximately $150 million USD. This signifies a significant investment in expanding data center capacity within Australia. The 7.10% CAGR suggests a continued upward trajectory, driven by several key factors. The increasing adoption of cloud computing and big data analytics fuels demand for robust and scalable data center infrastructure. Furthermore, the growth of e-commerce, the rise of digital transformation initiatives across various sectors (finance, healthcare, government), and the increasing need for high-performance computing are all contributing to this market expansion. Companies such as Fujitsu, Legrand, Hewlett Packard Enterprise, and Schneider Electric are key players, competing to provide innovative and efficient rack solutions. The market is segmented by type (e.g., wall-mounted, server racks), size, and functionality, offering diverse options to suit specific data center requirements. While potential restraints such as supply chain disruptions and economic fluctuations exist, the overall growth outlook remains positive, driven by the inherent demand for data center infrastructure in a rapidly digitalizing economy. Over the forecast period (2025-2033), the market is expected to show sustained growth as the Australian digital landscape continues to evolve. Key drivers for this market are: Increasing Deployment of Data Center Facilities, Growing Cloud Computing Adoption Leading to Investment in Hyperscale Data Centers; BFSI Sector Expected to Hold a Significant Share. Potential restraints include: Increasing Utilization of Blade Servers. Notable trends are: Telecom is Anticipated to Hold the Highest Market Share.

The Australia data center market size was valued at USD 4.5 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 7.8 Billion by 2033, exhibiting a CAGR of 5.7% from 2025-2033. The Australia data center market share is expanding, driven by rising cloud adoption, increasing digital transformation and strong demand for edge computing. Expanding investments from global players, renewable energy integration, and government initiatives for data localization are shaping the industry. Enhanced connectivity and advanced infrastructure are positioning Australia as a critical regional hub for data services.