Australia Data Center Market

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Australia Data Center Market by Type (Colocation, Hyperscale, Edge, and Others), by Deployment Model (On-premise, Cloud, and Hybrid), by Enterprise Size (Large Enterprise and Small and Medium Size Enterprise), and by End User (BFSI, IT and Telecom, Government, Energy and Utilities, and Other End Users)–Opportunity Analysis and Industry Forecast, 2024–2030

Industry: ICT & Media | Publish Date: 16-Jul-2024 | No of Pages: 111 | No. of Tables: 78 | No. of Figures: 43 | Format: PDF | Report Code : N/A

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Australia Data Center Market Overview

The Australia Data Center Market size was valued at USD 3.72 billion in 2023, and is predicted to reach USD 9.66 billion by 2030, at a CAGR of 14.6% from 2024 to 2030. The data center market, also known as the network infrastructure market, encompasses the entire lifecycle of specialized infrastructure for hosting computing systems, from initial planning and construction to ongoing operation and maintenance. This market includes a wide range of components such as servers, storage systems, and networking equipment, all of that provide services such as cloud computing and connectivity solutions. Currently, the industry is experiencing widespread adoption of cloud services and the rise of edge computing, that aims to reduce latency.

Key trends shaping the market include a strong focus on sustainability, heightened concerns about cybersecurity, the integration of hybrid and multi-cloud approaches, and the growing impact of 5G networks. These trends highlight the industry's proactive efforts to meet the increasing demand for scalable, efficient, and secure data processing and storage solutions in the era of digital transformation. According to projections by the United States International Trade Commission, the data processing and storage market is expected to grow from USD 56 billion in 2020 to USD 90 billion by 2025.

Government Strategy and Sustainability Initiatives Boosts the Market Growth

Australia holds the 2nd position in the data center industry in the APAC region, according to CloudScene data. This prominent standing is bolstered by the Australian government's strategic emphasis on resilience and security in data infrastructure, that compels network infrastructure to enhance their operations through strategic partnerships and advanced technologies.

Additionally, the government's focus on sustainability exerts considerable pressure on the industry to adopt greener practices. Initiatives such as potential carbon taxes and other environmental regulations are poised to significantly impact Australia data center market trends, pushing them towards more energy-efficient and sustainable solutions.

These regulatory measures are not only aimed at reducing the environmental footprint of the market but also at aligning with Australia’s broader goals of environmental stewardship and sustainability. By promoting such practices, the government aims to ensure that the industry remains robust, secure, and environmentally responsible, maintaining its competitive edge in the rapidly evolving digital landscape.

 

Investment by Prominent Companies Accelerates the Growth of the Market

The growing investment by prominent companies to enhance data centers in Australia significantly propels the market's growth. For instance, Microsoft committed USD 3.4 billion to expand the market footprint in Australia, increasing the number of sites from 20 to 29 and boosting computing capacity by 250% over two years. 

This expansion not only aligns with sustainability goals but also includes the launch of a Data Center Academy in partnership with TAFE NSW to address the rising demand for cloud computing services. Additionally, the expansion of global companies to meet the increasing demand for data-intensive workloads further fuels Australia's industry.

Arctic Wolf's launch of a netwok infrastructure center of the market in Sydney, leveraging Amazon Web Services, underscores this trend. This localized center enhances cybersecurity innovations for local customers, setting new standards in cybersecurity and bolstering defense capabilities against evolving cyber threats.

High Initial Investment Hinders the Market Growth

The data center market faces formidable challenges, primarily attributed to the substantial initial investment required and stringent environmental regulations. Establishing and maintaining network infrastructure demands significant upfront financial commitments, creating obstacles for smaller enterprises and start-ups seeking entry into the market. Additionally, ongoing compliance with environmental standards mandates continuous investment in energy-efficient technologies hinders the overall Australia data center market growth. 

 

Integration of Edge Computing Presents Lucrative Opportunity for Market Expansion

The integration of edge computing into market operations presents promising prospects for the industry's expansion. By minimizing latency and facilitating real-time processing, edge computing empowers applications such as the Internet of Things (IoT) and Augmented Reality (AR), alleviating the burden on centralized cloud data centers while providing scalability and flexibility. 

This decentralized approach not only enhances security by processing sensitive data locally but also aligns with evolving digital landscapes, paving the way for diverse opportunities for network infrastructure providers. Recent investments in start-ups such as Armada signify the escalating interest in edge computing solutions, signalling a concerted effort to address connectivity challenges and bridge the digital divide.

 

Competitive Landscape

The key players operating in the Australia data center industry include Amazon.com Inc., IBM Corporation, Microsoft Corporation, Cisco System Inc., Oracle Corporation, SAP SE, Hewlett Packard Enterprise Company, NTT Communications Corporation, Equinix Inc., Digital Reality Trust Inc. and others.

Australia Data Center Market Key Segments

By Type    

  • Colocation

  • Hyperscale

  • Edge 

  • Others

By Deployment Model

  • On-Premises

  • Cloud

  • Hybrid

By Enterprise Size 

  • Large Enterprise

  • Small and Medium Size Enterprise

By End User

  • BFSI

  • IT and Telecom

  • Government

  • Energy and Utilities 

  • Other End Users

REPORT SCOPE AND SEGMENTATION:

Parameters

Details

Market Size in 2023

USD 3.72 Billion

Revenue Forecast in 2030

USD 9.66 Billion

Growth Rate

CAGR of 14.6% from 2024 to 2030

Analysis Period

2023–2030

Base Year Considered

2023

Forecast Period

2024–2030

Market Size Estimation

Billion (USD)

Growth Factors

  • Government strategy and sustainability initiatives boosts the market growth.

  • Investment by prominent companies drives the growth of industry.

Companies Profiled

10

Market Share

Available for 10 companies

Customization Scope

Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.

Pricing and Purchase Options

Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

  • Amazon.com Inc.

  • IBM Corporation

  • Microsoft Corporation

  • Cisco System Inc.

  • Oracle Corporation

  • SAP SE

  • Hewlett Packard Enterprise Company

  • NTT Communications Corporation

  • Equinix Inc.

  • Digital Reality Trust Inc.

Bar chart Pie chart Pie chart

Frequently Asked Questions

The key market players operating in the market are Amazon.com Inc., IBM Corporation, Microsoft Corporation, Cisco System Inc., Oracle Corporation, SAP SE, Hewlett Packard Enterprise Company, NTT Communications Corporation, Equinix Inc., Digital Reality Trust Inc. and others.

According to the Next Move Strategy Consulting, the size of the Australia data center market is estimated at USD 3.72 billion in 2023.

High initial investment hinders the data center market growth.

Introduction of edge computing in data center is expected to create future opportunities in the Australia data center market.

According to the Next Move Strategy Consulting, the size of the Australia data Center market is estimated to be at USD 9.66 billion in 2030.

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