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Australia Data Center Colocation Data Report 2026: Market to Reach $3.78 Billion by 2030 - Size and Forecast by Revenue, Capacity, and 70+ Performance Metrics

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AMZN Mentioned as a key player facing power constraints in Sydney and Melbourne due to high demand for hyperscale capacities, indicating significant market presence and demand. GOOGL Identified as a major driver of hyperscale demand in Sydney and Melbourne, contributing to power constraints and highlighting its significant role in the Australian data center market. MSFT Cited as a significant consumer of hyperscale capacity in Sydney and Melbourne, contributing to power constraints and demonstrating its substantial investment in the region's data center infrastructure. ORCL Mentioned as a key entity contributing to high demand for hyperscale capacities in Sydney and Melbourne, facing power constraints and indicating its substantial presence in the Australian market. EQIX Identified as a dominant operator in the Australian data center colocation market, navigating phased builds and power connection timelines, indicating its significant operational presence and challenges. DLR Named as a key operator in the Australian data center market, facing challenges with phased builds and power connection timelines, highlighting its substantial role and operational considerations.

Australia Data Center Colocation Data Report 2026: Market to Reach $3.78 Billion by 2030 - Size and Forecast by Revenue, Capacity, and 70+ Performance Metrics Dublin, April 30, 2026 (GLOBE NEWSWIRE) -- The "Australia Data Center Colocation Market Size and Forecast by Revenue, Capacity, and 70+ Performance Metrics Across Service Type, Facility Architecture, Customer Segment, AI and Non AI Workloads, End Use Sector, Capacity Pipeline and Financial Metrics Databook Q2 2026 Update" has been added to ResearchAndMarkets.com's offering.

The Australia data center colocation market is poised for substantial growth, with expectations to climb 17.5% annually to reach US$2.32 billion by 2026. From 2021-2025, the growth showed a robust CAGR of 16.0%, anticipated to slightly decelerate to 13.0% between 2026-2030. The market, valued at US$1.97 billion in 2025, is projected to surge to approximately US$3.78 billion by 2030, fueled by rising AI and GPU workload demand and the continued build-out of hyperscale capacities.

Key Trends and Growth Drivers

Sydney and Melbourne represent the core of hyperscale demand, facing power constraints due to high demands from AWS, Google, Microsoft, and Oracle. Currently, operators like Equinix, Digital Realty, AirTrunk, and NEXTDC navigate phased builds against extended power connection timelines, especially in Western Sydney. Meanwhile, government data sovereignty requirements, as dictated by the Protective Security Policy Framework (PSPF) and ASD IRAP certifications, increase domestic colocation demand.

Competitive Landscape

With Sydney and Melbourne at the center, the market is dominated by operators such as NEXTDC, Equinix, Digital Realty, and AirTrunk. Notably, AirTrunk's acquisition by Blackstone enhances its capacity as a major player in the hyperscale domain. New campus expansions and international players further intensify competition.

Infrastructure & Regulatory Environment

Australia's National Electricity Market (NEM) shifts towards renewable energy, impacting grid stability and necessitating backup investments for data centers. Regulatory frameworks like the Security of Critical Infrastructure Act 2018 place additional operational obligations, while the Privacy Act governs data handling.

This comprehensive market analysis highlights both current dynamics and future opportunities within Australia's colocation ecosystem, providing valuable insights into capacity trends, operational efficiencies, and financial benchmarks crucial for stakeholders and investors looking to navigate and capitalize on this growing sector.

Key Attributes:

For more information about this report visit https://www.researchandmarkets.com/r/cqltbn

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