ANZ cloud growth to drive datacentre demand

Cloud services growth of 11.4% CAGR will drive a tripling of Australian datacentre capacity to over 3,000MW by FY28.

David Kennedy · Venture Insights30 August 2024Period: FY244 min read

11.4%↑

Total ANZ cloud services market CAGR (FY23-FY28)

AU$21.1bn↑

Forecast Australian cloud services revenue (FY28)

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Abstract

Venture Insights forecasts that the total cloud services market in Australia and New Zealand will grow at a 11.4% CAGR from FY23 to FY28. The Australian market will reach over AU$21.0bn, while NZ’s market will exceed NZ$4.0bn in FY28. This trend will contribute to a tripling of datacentre capacity in Australia over the next five years, taxing energy infrastructure and construction capacity in both countries.

Key Takeaways

The total ANZ cloud services market is forecast to grow at an 11.4% CAGR from FY23 to FY28.
Australian cloud revenue will reach AU$21.1bn by FY28, driven by SaaS and high-growth PaaS segments.
New Zealand cloud services are expected to grow at a faster rate of 13.6% CAGR to reach NZ$4.1bn by FY28.

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Frequently Asked Questions

The combined ANZ cloud services market is forecast to expand at an 11.4% CAGR through FY28. By the end of this period, the Australian market will reach AU$21.1bn, while New Zealand is expected to exceed NZ$4.1bn.

Australian datacentre capacity is projected to triple between FY23 and FY28 to meet the demands of cloud and AI workloads. Hyperscalers will become the dominant force in this space, increasing their share of total capacity from 40% to 51%.

Growth in the AU$21.1bn Australian market is primarily driven by SaaS and high-growth PaaS segments. In New Zealand, the market is expanding even faster than the regional average, with a projected 13.6% CAGR through FY28.

The ambitious plan to triple datacentre capacity faces significant headwinds from energy infrastructure limitations and construction capacity constraints. These bottlenecks pose a direct risk to the 11.4% annual growth rate projected for the regional cloud market.

ANZ cloud growth to drive datacentre demand

Abstract

Key Takeaways

Frequently Asked Questions

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