The latest report by IMARC Group, titled "Australia Data Center Market Report by Component (Solution, Services), Type (Colocation, Hyperscale, Edge, Others), Enterprise Size (Large Enterprises, Small and Medium Enterprises), End User (BFSI, IT and Telecom, Government, Energy and Utilities, Others), and Region 2025-2033," offers a comprehensive analysis of the Australia data center market growth. The report includes competitor and regional analysis, along with a detailed breakdown of the market segmentation. The Australia data center market size reached USD 4.5 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 7.8 Billion by 2033, exhibiting a CAGR of 5.7% during 2025–2033.Base Year: 2024
Forecast Years: 2025–2033
Historical Years: 2019–2024
Market Size in 2024: USD 4.5 Billion
Market Forecast in 2033: USD 7.8 Billion
Market Growth Rate (2025–2033): 5.7%
Australia Data Center Market Overview
Key drivers of the Australian data center market include the rising adoption of cloud computing, digital transformation, the emergence of edge data centers, growing investments from global data center operators, renewable energy initiatives, and the government's support for data sovereignty and data localization initiatives in the country.
Australia's existing strong connectivity infrastructure and technology capability are on track to make it a major data services hub in the Asia-Pacific region. Australia connects a population highly. Over 25 million internet users use the internet. 94.9% penetrate the internet. This creates demand for strong digital infrastructure.
Because AI is used more, big data is analyzed, and Internet of Things (IoT) technology emerges, hyperscale data centers and edge data centers are more in demand, and Australia's geographic location and conditions increasingly attract data centers as a regional hub for data communications.
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Australia Data Center Market Trends
• Sustainability focus advancement: Data center operators increasingly adopting renewable energy sources including solar, wind, and hydroelectric power with advanced cooling technologies like liquid cooling and free air systems.
• Cloud adoption acceleration: Businesses migrating to cloud-based solutions utilizing public, private, and hybrid cloud models for enhanced flexibility, scalability, and operational cost reduction.
• Edge computing expansion: Growing implementation driven by IoT devices and 5G networks requiring real-time data processing capabilities closer to source locations for reduced latency.
• AI infrastructure investment: Major expansion projects including Equinix's AU$240 million investment in Sydney and Melbourne facilities supporting growing AI infrastructure demands and enterprise adoption.
• Data sovereignty compliance: Increasing emphasis on local data storage and processing capabilities meeting Australian Privacy Principles and regulatory requirements for sensitive information handling.