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.
- Sydney and Melbourne: As primary markets, they experience tight supply, leading to premium pricing. Alternative markets like Brisbane and Perth lack Sydney’s connectivity.
- IRAP Certification: Critical for accessing government contracts, presenting a competitive edge for operators with security certification.
- Regional Demand: The resources sector, particularly mining and energy, is accelerating colo demand in regions like Perth and Darwin.
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.
- NextDC: Largest domestic operator with facilities across Australia.
- Equinix and Digital Realty: Key players in Sydney and Melbourne.
- Blackstone’s AirTrunk Acquisition: Signals strong confidence and capital infusion into Australia’s scale.
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.
- Power Grid Challenges: Especially evident in Sydney, where connection delays impact development timelines.
- Regulatory Compliance: Meeting SOCI Act requirements involves significant compliance investment.
- Cost Implications: High land and construction costs coupled with limited skilled labor present expansion barriers.
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:
| Report Attribute | Details |
| No. of Pages | 125 |
| Forecast Period | 2026 – 2030 |
| Estimated Market Value (USD) in 2026 | $2.32 Billion |
| Forecasted Market Value (USD) by 2030 | $3.78 Billion |
| Compound Annual Growth Rate | 13.0% |
| Regions Covered | Australia |
For more information about this report visit https://www.researchandmarkets.com/r/cqltbn
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- Australian Data Center Colocation Market