Report Overview

Australian Data Centres and Submarine Cables Outlook

This week’s announcement by Amazon of a major datacentre investment in Melbourne highlights the rapid expansion of Australia’s datacentre market:

• The Australian data centre (DC) market is rapidly expanding, forecast to reach over A$2.5bn by 2026 with nearly 1,500 MW of capacity. Current revenues are A$1.2bn with 620 MW capacity
• Currently, a majority of data stored in outsourced DCs are from enterprise and government clients. However, the market is moving towards the hyperscale segment, due to ongoing shift to cloud-based computing. We predict hyperscale to generate 50% of total DC revenue in 2026, occupying 55% of total supply

This Venture Insights report analyses the drivers of the datacentre and international connectivity markets in Australia, the key local and international players and their prospects, and the growing impact of hyperscale. It includes a forecast of DC capacity growth and unit pricing to FY25 for enterprise, hyperscale and government segments.

Contents

Executive Summary

Customer segments

Revenue by players

Revenue by segment

Supply volume by player

Supply volume by geography

Pricing and supply volume by segment

New builds and government funding

Growth in Data Centre Market

Data Centre Trends – Edge Computing

Submarine Cables – Australia

Submarine Cables – Summary

Submarine Cables – Trends and Drivers

Figures

Fig. 1: Outsourced data centre revenues by segment (%)

Fig. 2: Outsourced data centre revenues by player (%)

Figure 3: Data centre revenue by segment ($m)

Figure 4: Supply volume by player (%)

Figure 5: Supply volume by geography (%)

Figure 6: Supply volume by segment (%)

Figure 7: Pricing by segment ($m/MW)

Figure 8: Conventional cloud vs edge computing comparison

Figure 9: Map of Australian submarine cables