Australian Data Centres Outlook

Cloud migration and hyperscale demand drive a 17.7% CAGR in the Australian data centre market through FY26.

David Kennedy · Venture Insights1 May 2022Period: FY22-FY268 min read

Last updated 10 June 2026

17.7%↑

Total Market Revenue CAGR (FY22-FY26)

54%↑

Hyperscale share of total supply capacity (FY26)

Locked

Companies covered:AirTrunkEquinixGlobal SwitchNextDCDigital RealtyCanberra Data CentresLeading EdgeMacquarie TelecomMicrosoftGoogleAmazon

Abstract

This report analyses the Australian data centre market, forecasting a rapid expansion to over $4.9bn in revenue and nearly 2,900MW of capacity by the end of FY26. Driven by the ongoing shift to cloud-based computing, the hyperscale segment is expected to generate 49% of total revenue and account for 54% of total supply. The analysis covers key market players, geographic hubs in Sydney and Melbourne, and emerging technology trends such as edge computing and 5G.

Key Takeaways

The Australian data centre market will reach $4.9bn in revenue by FY26, representing a 17.7% CAGR from FY22.
Hyperscale capacity is set to dominate the market, accounting for 54% of total supply and 49% of revenue by 2026.
NextDC and Canberra Data Centres are the fastest-growing major players with forecast revenue CAGRs of 33.9% and 30.2% respectively.

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Frequently Asked Questions

The market is expanding at a 17.7% CAGR, with total revenue projected to reach $4.9bn by FY26. This growth is underpinned by a massive capacity build-out, with total supply expected to hit nearly 2,900MW within the same period.

Hyperscale infrastructure is the primary market driver, forecast to account for 54% of total supply capacity and 49% of total revenue by 2026. This shift reflects the accelerating transition to cloud-based computing across the Australian economy.

NextDC and Canberra Data Centres are the fastest-growing major players, with forecast revenue CAGRs of 33.9% and 30.2% respectively. These companies are successfully capturing the bulk of new demand compared to slower-growing legacy providers.

Increased competition and economies of scale will drive pricing down across all segments. Hyperscale pricing is specifically forecast to decline to $1.8m per MW by FY26.

Australian Data Centres Outlook

Abstract

Key Takeaways

Frequently Asked Questions

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