Australia Data Center Construction Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 10.60 Billion |
| Market Size (2030) | USD 14.60 Billion |
| CAGR (2024 - 2030) | 4.91 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Australia Data Center Construction Market Analysis
The Australia Data Center Construction Market size is estimated at USD 10.60 billion in 2024, and is expected to reach USD 14.60 billion by 2030, growing at a CAGR of 4.91% during the forecast period (2024-2030).
Under Construction IT Load Capacity: The upcoming IT load capacity of the Australian data center construction market is expected to reach more than 3200 MW by 2030
Under Construction Raised Floor Space: The country's construction of raised floor space is expected to reach more than 11.4 thousand sq. ft by 2030.
Planned Racks: The country's total number of racks to be installed is expected to reach more than 570 thousand units by 2030.
Planned Submarine Cables: There are more than 20 submarine cable systems connecting Australia, and many are under construction.
Australia Data Center Construction Market Trends
Tier 3 Data Centers were Expected to Record Significant Market Share in 2023
- Australia's data center construction market is experiencing consistent growth, driving service providers to adopt tier 3 standards. Consequently, the nation is witnessing a surge in tier 3 colocation facilities. As of 2023, Australia boasted over 100 tier 3 data centers, with more than 10 additional facilities under construction, all aiming for tier 3 certification.
- Key players in tier 3 data center construction include STACK Infrastructure, Canberra Data Centers, and DCI Data Centers. Sydney is set to see the most significant surge in construction, with Melbourne and Perth following suit.
- The surge in digitization is set to propel significant growth for tier 3 data centers in the near future. Key drivers, including the widespread adoption of smartphones, a push from companies toward richer online content and graphics, and the expanding base of online shoppers and digital payment users, are all primed to fuel the expansion of tier 3 data centers in Australia. As data processing requirements escalate, so does the demand for new data centers in the nation.
- In the Australian data center market, tier 3 and 4 data centers are poised for substantial growth. Tier 3 data centers, boasting an uptime of 99.98% and N+1 redundancies, are highly favored by a majority of businesses. Yet, there is a notable shift among providers toward attaining tier 4 certification for their latest ventures. A case in point is NextDC's Brisbane data center, which clinched the prestigious title of being the nation's inaugural tier 4 certified facility by the Uptime Institute.
The IT and Telecommunications Segment to Hold Significant Market Share
- The Australian telecommunications industry is undergoing a significant transformation. In recent years, the National Broadband Network (NBN) has been diligently extending its fiber optic network across the nation. Following a recent government directive to transition 1.5 million locations from FTTN to full fiber, the NBN is poised to substantially boost its fixed-line connections. By 2025, the NBN plans to enhance its top wholesale speed tier from 500 Mbps to nearly 1 Gbps, prioritizing over 700,000 locations. This strategic upgrade not only enhances internet accessibility but also propels the country's digitalization efforts. As digitalization gains traction, there is a notable surge in data consumption, consequently spurring a heightened demand for data centers in Australia.
- Over the last decade, Australia's IT spending has shown consistent growth, and experts predict this trend will continue with growth rates of 5% to 6% in the coming years. Around 43% of Australia's IT systems have transitioned to the cloud, a figure expected to rise during the forecast period. Projections indicate that Australia's public cloud spending will surge by 83%, leaping from USD 12.2 billion in 2022 to an estimated USD 22.4 billion by 2026. Highlighting this shift, AWS, in July 2024, announced plans to construct three specialized facilities tailored for the defense and intelligence industries. These data centers are slated for completion by 2027. The Australian government's cloud exploration, initiated in 2021, aligns with the broader digitalization trend sweeping the nation, underscoring the rising demand for additional data center infrastructure.
- By 2030, Australia is poised to emerge as a leading digital economy, a trajectory propelled by concerted efforts from both governmental and private sectors. This momentum was set in motion with the unveiling of the Australian government's 2021 Digital Economy Strategy, which outlined a substantial AUD 1.2 billion (USD 0.76 billion) investment aimed at bolstering Australia's digital prowess and global competitiveness. From overhauling regulatory policies to prioritizing investments in cybersecurity and technical education, the government has been proactive in urging businesses to embrace digital transformation, thereby fortifying Australia's economic standing. Notably, initiatives like the Australian Government Information Management Office (AGIMO) spearheaded the Australian Government Data Center Strategy 2010-2025, steering a shift from singular government data centers to multi-tenant, third-party facilities. These developments have fueled a surge in data consumption, necessitating a corresponding rise in data center constructions across the nation.
- In October 2023, Microsoft announced a significant investment of AUD 5 billion (USD 3.2 billion) in Australia. This investment is earmarked for expanding its cloud computing and AI infrastructure over the next two years. Furthermore, Microsoft is set to partner with the state of New South Wales to launch the Microsoft Datacenter Academy in Australia. The tech giant is also collaborating with the Australian Signals Directorate intelligence agency on a cybersecurity initiative. These initiatives not only bolster the growth of data centers in Australia but also incentivize operators to either expand their existing facilities or venture into building new ones to meet the rising demands for data processing.
Australia Data Center Construction Industry Overview
The Australian data center construction market is moderately consolidated, with key players such as FDC Construction & Fitout and Icon Group GmbH. Notably, major data center corporations are intensifying their investments in Australia, primarily focusing on expanding and building new facilities. This uptick in investments directly correlates with the growing demand for advanced data processing and storage capabilities.
May 2024: Canberra Data Centres (CDC), an Australian operator, is in the works to establish a significant data center campus in Sydney. Acting on CDC's behalf, Mecone Group Pty Limited submitted a SEARS request to New South Wales. The request outlines plans for a 504 MW data center facility in Northwest Sydney. Spanning 21 hectares, the project is set to include six four-story data center buildings, a 720 MW substation, and a total of 24 data halls in each building. The combined area of these halls is expected to reach approximately 2.7 million sq. ft, complemented by 40 generators.
Australia Data Center Construction Market Leaders
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Stowe Australia
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Kapitol Group
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FDC Construction & Fitout
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Icon group GmbH
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Construction Specialties L.L.C.
*Disclaimer: Major Players sorted in no particular order
Australia Data Center Construction Market News
- 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.
Australia Data Center Construction Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions And Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
- 2.1 Research Framework
- 2.2 Secondary Research
- 2.3 Primary Research
- 2.4 Data Triangulation and Insight Generation
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
- 4.1 Market Overview
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4.2 Market Dynamics
- 4.2.1 Market Drivers
- 4.2.1.1 Increasing Data Center Investments to Drive Market Growth
- 4.2.1.2 The Expansion of Major Cloud Operators and Investments to Drive Market Growth
- 4.2.2 Market Restraints
- 4.2.2.1 Construction Delays as well as Shortages of Suitable Land to Hinder Market Growth
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4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Bargaining Power of Suppliers
- 4.3.2 Bargaining Power of Consumers
- 4.3.3 Threat of New Entrants
- 4.3.4 Threat of Substitutes
- 4.3.5 Intensity of Competitive Rivalry
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4.4 Key Australia Data Center Construction Statistics
- 4.4.1 Number of Data Centers in Australia, 2022 and 2023
- 4.4.2 Data Center Under Construction in Australia, in MW, 2024 - 2029
- 4.4.3 Average Capex and Opex for the Australian Data Center Construction
- 4.4.4 Data Center Power Capacity Absorption in MW, Selected Cities, Australia, 2022 and 2023
- 4.4.5 The Top CAPEX Spenders on Data Center Infrastructure in Australia
5. MARKET SEGMENTATION
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5.1 By Infrastructure
- 5.1.1 By Electrical Infrastructure
- 5.1.1.1 Power Distribution Solution
- 5.1.1.1.1 PDU - Basic and Smart - Metered and Switched Solutions
- 5.1.1.1.2 Transfer Switches
- 5.1.1.1.2.1 Static
- 5.1.1.1.2.2 Automatic (ATS)
- 5.1.1.1.3 Switchgear
- 5.1.1.1.3.1 Low-voltage
- 5.1.1.1.3.2 Medium-voltage
- 5.1.1.1.4 Power Panels and Components
- 5.1.1.1.5 Others
- 5.1.1.2 Power Back-up Solutions
- 5.1.1.2.1 UPS
- 5.1.1.2.2 Generators
- 5.1.1.2.3 Service - Design and Consulting, Integration, Support and Maintenance
- 5.1.2 By Mechanical Infrastructure
- 5.1.2.1 Cooling Systems
- 5.1.2.1.1 Immersion Cooling
- 5.1.2.1.2 Direct-to-Chip Cooling
- 5.1.2.1.3 Rear Door Heat Exchanger
- 5.1.2.1.4 In-row and In-rack Cooling
- 5.1.2.2 Racks
- 5.1.2.3 Other Mechanical Infrastructure
- 5.1.3 General Construction
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5.2 By Tier Type
- 5.2.1 Tier 1 and 2
- 5.2.2 Tier 3
- 5.2.3 Tier 4
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5.3 By End User
- 5.3.1 Banking, Financial Services, and Insurance
- 5.3.2 IT and Telecommunications
- 5.3.3 Government and Defense
- 5.3.4 Healthcare
- 5.3.5 Other End Users
6. COMPETITIVE LANDSCAPE
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6.1 Company Profiles
- 6.1.1 FDC Construction & Fitout
- 6.1.2 Icon group GmbH
- 6.1.3 Construction Specialties LLC
- 6.1.4 Stowe Australia
- 6.1.5 Kapitol Group
- 6.1.6 Nilsen Contracting
- 6.1.7 Linesight
- 6.1.8 Manteena Group
- 6.1.9 J Hutchinson Pty Ltd
- 6.1.10 FKG Group
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. ABOUT US
- 9.1 Industries Covered
- 9.2 Illustrative List of Clients in the Industry
- 9.3 Our Customized Research Capabilities
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.
The Australian data center construction market is segmented by infrastructure (electrical infrastructure [power distribution solution (PDU, transfer switches, switchgear, power panels and components, and others), power back-up solution (UPS and generators), and service (design and consulting, integration, and support and maintenance)], mechanical infrastructure [cooling systems (immersion cooling, direct-to-chip cooling, rear door heat exchanger, and in-row and in-rack cooling), racks, and other mechanical infrastructure], and general construction), tier type (tier 1 and 2, tier 3, and tier 4), and end user (banking, financial services and insurance, IT and telecommunications, government and defense, healthcare, and other end users).
| By Infrastructure | By Electrical Infrastructure | Power Distribution Solution | PDU - Basic and Smart - Metered and Switched Solutions | |
| Transfer Switches | Static | |||
| Automatic (ATS) | ||||
| Switchgear | Low-voltage | |||
| Medium-voltage | ||||
| Power Panels and Components | ||||
| Others | ||||
| By Infrastructure | By Electrical Infrastructure | Power Back-up Solutions | UPS | |
| Generators | ||||
| Service - Design and Consulting, Integration, Support and Maintenance | ||||
| By Infrastructure | By Mechanical Infrastructure | Cooling Systems | Immersion Cooling | |
| Direct-to-Chip Cooling | ||||
| Rear Door Heat Exchanger | ||||
| In-row and In-rack Cooling | ||||
| By Infrastructure | By Mechanical Infrastructure | Racks | ||
| Other Mechanical Infrastructure | ||||
| By Infrastructure | General Construction | |||
| By Tier Type | Tier 1 and 2 | |||
| Tier 3 | ||||
| Tier 4 | ||||
| By End User | Banking, Financial Services, and Insurance | |||
| IT and Telecommunications | ||||
| Government and Defense | ||||
| Healthcare | ||||
| Other End Users |
Australia Data Center Construction Market Research FAQs
How big is the Australia Data Center Construction Market?
The Australia Data Center Construction Market size is expected to reach USD 10.60 billion in 2024 and grow at a CAGR of 4.91% to reach USD 14.60 billion by 2030.
What is the current Australia Data Center Construction Market size?
In 2024, the Australia Data Center Construction Market size is expected to reach USD 10.60 billion.
Who are the key players in Australia Data Center Construction Market?
Stowe Australia, Kapitol Group, FDC Construction & Fitout, Icon group GmbH and Construction Specialties L.L.C. are the major companies operating in the Australia Data Center Construction Market.
What years does this Australia Data Center Construction Market cover, and what was the market size in 2023?
In 2023, the Australia Data Center Construction Market size was estimated at USD 10.08 billion. 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, 2029 and 2030.
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.
