The changing face of the data centre - Enabling digital transformation

Digital disruption and cloud adoption drive the transformation of data centres from passive hubs to innovation enablers.

Venture Insights · Venture Insights1 January 2016Period: 2016-20213 min read

Last updated 10 June 2026

17%↑

Expected CAGR of Australian data centre market value to 2021

2014→

Year of Privacy Act changes impacting data sovereignty

Companies covered:DatacomPacnetASGCDCYourDCMetronodeOracleIBMRio TintoFujitsuFoxtelAAPTMacquarie TelecomVocusEquinixNextgenDigital RealtyCenturyLinkGlobal Switch

Abstract

This report analyses the explosive growth of the Australian data centre market, driven by digital disruption, service innovation, and increasing demand for local digital real estate. It identifies key growth drivers including IoT, Big Data, and Cloud Computing, while forecasting a market value CAGR of 17% through 2021. The analysis categorises key market participants across local, global, proprietary, and telco segments, highlighting the shift toward 'Computing as a Service' and the impact of the 2014 Privacy Act on data sovereignty.

Key Takeaways

The Australian data centre market is forecast to grow at a 17% CAGR through 2021.
Data centres are evolving from passive hubs into 'digital real estate' and enablers of innovation.
IoT, Big Data, and Cloud Computing are identified as the primary technological drivers for market expansion.

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Frequently Asked Questions

The market is forecast to expand at a 17% CAGR through 2021. This growth is driven by a fundamental shift toward 'Computing as a Service' as the standard for ICT outsourcing.

The 2014 Privacy Act changes have fundamentally redefined data sovereignty and sensitivity requirements for all Australian operators. Providers must now align their digital real estate strategies with these stricter legal frameworks to capture market share.

IoT, Big Data, and Cloud Computing are the three primary technological drivers accelerating market expansion. These sectors are pushing the 17% annual growth in market value as enterprises seek local capacity for high-intensity workloads.

Operators are facing critical pressures regarding energy intensity and the need for long-term sustainability. Managing these operational costs is essential to maintaining margins while the market scales at a 17% CAGR through 2021.

The changing face of the data centre - Enabling digital transformation

Abstract

Key Takeaways

Frequently Asked Questions

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