Australian Data Centre Forecast and Outlook 2024

Cloud and AI demand will drive the Australian data centre market to more than double in revenue by FY28.

David Kennedy · Venture Insights1 March 2024Period: FY248 min read

$6.1bn↑

Forecast Australian DC market revenue (FY28)

26.3%↑

CAGR for total supply volume (FY23-FY28)

Locked

+1more stats

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Abstract

This report forecasts the Australian data centre market to rise from $2.5bn in FY23 to over $6.1bn in FY28, representing a significant expansion in both revenue and capacity. Total volume is expected to grow from 1.01GW to 3.23GW over the same period, driven primarily by the rapid shift toward cloud-based computing and the emergence of AI-driven workloads. The analysis examines segment shifts between government, enterprise, and hyperscale providers, while detailing the competitive landscape and geographic dominance of Sydney and Melbourne.

Key Takeaways

The Australian data centre market will more than double in revenue to $6.1bn by FY28, driven by cloud and AI demand.
Total built capacity is forecast to reach 3.23GW by FY28, growing at a 26.3% CAGR from 1.01GW in FY23.
Hyperscale providers will dominate the market, accounting for 60% of total demand and 41% of outsourced revenue by FY28.

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Frequently Asked Questions

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.

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.

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.

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

Abstract

Key Takeaways

Frequently Asked Questions

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