Question 1

How rapidly is the Australian data centre market expanding in terms of revenue and capacity?

Accepted Answer

Market revenue is projected to more than double from $2.5 billion in FY23 to $6.1 billion by FY28. Total built capacity will grow at a 26.3% CAGR over the same period, reaching 3.23GW as cloud and AI workloads accelerate.

Question 2

Which customer segments will dominate the demand profile over the next five years?

Accepted Answer

Hyperscale providers are the primary growth engine, forecast to account for 60% of total market demand by FY28. This segment will also contribute 41% of total outsourced revenue as large-scale cloud deployments mature.

Question 3

Will increased market scale lead to significant price reductions for tenants?

Accepted Answer

No. Blended pricing per MW is expected to remain remarkably stable with a marginal -1.7% CAGR through FY28. Rising construction costs and elevated power prices are effectively neutralizing the downward pressure typically associated with increased supply volume.

Question 4

Are there specific operators positioned to outperform the broader market?

Accepted Answer

NEXTDC is identified as a primary beneficiary of current trends, with a projected revenue CAGR of 31.6% through FY28. This outperformance is driven by its strategic exposure to high-growth enterprise and hyperscale segments.

Australian Data Centre Forecast and Outlook 2024

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