Australia Data Center Market Report and Future Opportunity Assessment

Shibuya-ku, Tokyo, Japan, Japan, Feb 16, 2022, 04:22 /Comserve / -- Australia Data Center Market With Top Countries Data, Industry Analysis , Size, Share, Revenue, Prominent Players, Developing Technologies, Tendencies and Forecast

The Australian data center market is estimated to register a CAGR of about 4.5% during the forecast period (2020 to 2025). The growth of the market can be attributed to the increasing use of cloud services by organizations in both the private and government sector and the creation of infrastructure through cable networks. Further hyperscale public cloud service providers have been key in driving demand for data center services in Australia, particularly in the cities of Sydney and Melbourne.

- The increasing data has raised the demand for data centers in Australia. According to Cisco, in Australia, IP traffic will reach 1.9 Exabytes per month in 2020, up from 711 Petabytes per month in 2015. Further, its IP traffic will reach an annual run rate of 22.5 Exabytes in 2020, up from an annual run rate of 8.5 Exabytes in 2015. Also, there will be 237.0 million networked devices in 2020, up from 130.4 million in 2015. With such data generation by increasing advanced technology, such as cloud, IoT devices, and others, the demand for data centers significantly drives the market.
- Further, with the advent of colocation services, it has become an attractive solution to many small-scale and hyper-scale players equally, as it allows organizations to address their storage issues without substantial upfront costs. Businesses can rent equipment, space, bandwidth, and other computing hardware to retail customers securing space for enterprise businesses. This capacity includes anything from cabinets to cages or private suites. Currently, there are a total of 117 colocation data centers located in 14 areas in Australia and are significantly expanding the facilities, which caters to the market growth.

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Key Market Trends

Adoption of Cloud Computing Accounts for Signficant Share

- The adoption of cloud computing has significantly driven the market for the data center. The adoption of SaaS services by SMEs is driving the Australian cloud computing market, where healthcare, retail, banking and insurance, mining, and public sectors are investing significantly in digitalization of their business operations. Government agencies are taking the initiative to digitize several sectors.
- Players, such as Macquarie Data Centers, announced for three data centers to be built in Sydney, Australia, in 2020. The USD 80 million IC3 East data center will soon be located in the Macquarie Park Innovation District and planned for completion at the end of 2020. It will also increase its existing Macquarie Data Centre Campus capacity to the 43 megawatts and expects that the IC3 East data center will be an ideal facility for hyper scalers, software-as-a- service (SaaS) providers and global enterprises looking to capitalize on the expanding technology hub of Sydney and increasing adoption of cloud infrastructure in Australia.
- Further, high-performance computing, including cloud computing, has led to an increase in the average power density requirements of data centers. Many end users now demand power densities of 8 kW to 20 kW per rack, with peak power requirements of about 50 kW per rack for higher-performance computing applications.
- As Equinix is the largest data center provider in Australia, its 15 International Business Exchange (IBX) data centers in Sydney, Melbourne, Perth, Canberra, Adelaide, and Brisbane provides interconnection platform and is ready to enable new business opportunities providing high power density.

Renewable Energy Adoption in Data Center Witnesses a Significant Growth

- Renewables are an important strategy to implement in the data center sector, from both a business and environmental perspective. Clean energy prices are less volatile than carbon-based sources, offering more sustainability. Also, 95% of data centers are old, small-scale operations. The average Australian data center is now over 20 years old, and most are inefficiently designed. Older in-house data centers increasingly require substantial upgrading to meet modern IT demands, while electricity costs have continued to rise in recent years. The investment in renewable capacity increases the scope of the data center facility to get equipped with this solution.
- According to Melbourne's Deputy Lord Mayor, Arron Wood, the Melbourne Renewable Energy Project has united corporations, councils, and universities to source energy from a new Pacific Hydro facility. The project is an Australian-first demonstrating that large organizations can combine their funds to facilitate the development of clean energy plants. With only 17% of Victoria's power currently derived from renewable energy, there is considerable scope for growth in the sector for the data center.

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- Further, data centers are harnessing the power of renewable wind and solar energy, moving towards green data center facilities. In March 2020, Amazon announced its new renewable energy projects in Australia, supporting Amazon's commitment to reach 80% renewable energy by 2024 and 100% renewable energy by 2030, further with net-zero carbon till the year 2040.
- Amazon's first renewable energy project in the country is 60 MW (megawatt) solar project anticipated to come in operation in 2021 in the northern New South Wales. The project is expected to generate approx 142,000 megawatt-hours (MWh) of clean energy annually equivalent to the annual electricity of almost 23,000 average Australian households.

Competitive Landscape

The Australian data center market is competitive and fragmented as players are increasingly manufacturing new facilities in Australia, providing more offerings to end users. Key players are NTT Communications Corporation, Equinix Inc., etc. Recent developments in the market are -

1 INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Rate of Data Traffic
4.2.2 Adoption of Colocation Services For Cost Effective Solution
4.3 Market Restraints
4.3.1 Limitations on Data Security Features
4.4 Industry Value Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of Impact of COVID-19 on the Industry

5 MARKET SEGMENTATION

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