Data centre outlook and forecast released

The Australian data centre market is forecast to rise from $1.8bn to over $4.2bn by FY27 driven by hyperscale demand.

David Kennedy · Venture Insights11 April 2023Period: FY23-FY273 min read

Last updated 8 June 2026

24.5%↑

CAGR for AU datacentre capacity growth (FY22-FY27)

2.8GW↑

Total projected AU datacentre capacity (FY27)

Locked

+1more stats

Companies covered:MicrosoftAWSAirTrunkNextDCCanberra Data Centres

Abstract

This report analyses the Australian data centre market, forecasting a rise from $1.8bn to over $4.2bn by FY27. It highlights a significant shift toward the hyperscale segment, which is expected to generate 39% of total revenue and 59% of total supply by the end of the forecast period. Sydney remains the dominant hub for investment, while regional expansions continue in Perth, Darwin, and Brisbane, driven by submarine cable landings and cloud adoption.

Key Takeaways

Australian data centre capacity is forecast to grow at a 24.5% CAGR to reach 2.8GW by FY27.
Market revenues will reach $4.2bn by FY27, though growth lags capacity at 18.5% CAGR due to falling price per MW.
Sydney is entrenching its dominance, projected to hold 73% of national data centre volume by FY27.

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Frequently Asked Questions

Capacity is forecast to grow at a 24.5% CAGR to reach 2.8GW by FY27. Market revenues will climb to $4.2bn over the same period, though the 18.5% revenue CAGR will lag capacity growth due to a sustained decline in price per MW.

The hyperscale segment is the primary growth engine, projected to account for 59% of total supply and 39% of total revenue by FY27. This shift is being led by specialist operators like AirTrunk and NextDC, who are successfully displacing traditional telecommunications providers.

Sydney is entrenching its position as the primary hub and is expected to hold 73% of national data centre volume by FY27. Emerging opportunities are also materialising in Perth, Darwin, and Brisbane, where new submarine cable landings are driving regional cloud adoption.

Data centre outlook and forecast released

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