Australian Data Centres and Submarine Cables Outlook

Hyperscale segment to generate 35% of total DC revenue by 2026 as cloud migration and submarine cable landings accelerate.

Nitish Kumar · Manager – Planning, Strategy and Market Intelligence at TPG Telecom1 October 2019Period: October 201912 min read

Last updated 10 June 2026

A$3bn+↑

Forecast Australian DC market revenue by 2026

1,200 MW↑

Forecast total Australian DC capacity by 2026

Locked

+1more stats

Companies covered:AirTrunkEquinixGlobal SwitchNextDCMacquarie TelecomDigital RealtyCanberra Data CentresTelstraVocusGoogleMicrosoftAmazon

Abstract

This report analyses the Australian data centre and submarine cable landscape, forecasting a market expansion to over A$3bn by 2026. It details the shift from enterprise-led demand to hyperscale dominance, with hyperscale expected to occupy 62% of total supply capacity. The analysis covers major provider strategies, regional growth in Perth and Brisbane driven by new cable landings, and the emerging impact of edge computing on data intensive applications.

Key Takeaways

The Australian data centre market is forecast to double in revenue to over A$3bn by 2026, supported by 1,200 MW of capacity.
Hyperscale is the fastest-growing segment with a 25.9% revenue CAGR, expected to occupy 62% of total supply by 2026.
Sydney and Melbourne maintain over two-thirds of national capacity, but Brisbane and Perth are emerging as high-growth hubs.

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Frequently Asked Questions

The market is on track to double its revenue, reaching over A$3bn by 2026. This growth is supported by a total capacity pipeline that will hit 1,200 MW within the same period.

Hyperscale is the clear leader, expanding at a 25.9% revenue CAGR. By 2026, hyperscale tenants will occupy 62% of the total supply capacity in Australia.

No, capacity prices are projected to fall by 20% annually. This deflation is driven by the deployment of five new submarine cables that will significantly increase data centre usage across the region.

While these two cities currently hold over two-thirds of national capacity, Brisbane and Perth are emerging as high-growth hubs. This shift is being accelerated by new cable landings and the rising demand for edge computing to support data-intensive applications.

Australian Data Centres and Submarine Cables Outlook

Abstract

Key Takeaways

Frequently Asked Questions

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