Australian data centre market booming

The Australian data centre market is experiencing strong growth and has emerged as one of four major data centre sub-markets in Asia–Pacific, according to Budde Communications senior analyst Phil Harpur.

Local data centre specialist providers including NEXTDC and Canberra Data Centres and global providers including Equinix have all expanded their Australian presence significantly over the last few years, Harpur said in a research note.

Meanwhile, new providers including Airtrunk and Data Exchange Network are entering the Australian market, and international cloud providers are increasingly leasing large amounts of floor space from Australia-located specialist data centre providers and using it to operate their own data centres.

This strong growth trajectory is expected to continue over the next five years, Harpur said. Due to the maturing market, data centre specialist providers are the market leaders, with IT service providers and operators retreating from the market.

The fastest growing segment of most Australian data centre providers is cloud computing, as a result of growing demand from corporate and government organisations looking to migrate to a private or hybrid cloud architecture.

But the influx of additional capacity and the enhanced competition are putting downward pressure on pricing and have reduced occupancy rates in the short term, Harpur noted.

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