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Checking in on the current state of Australia’s data centre market

Data centres are in high demand as a result of increased data generation from modern technologies such as the cloud and IoT devices

Microsoft is planning a new data centre campus in Melbourne. Andrey Bayda/Shutterstock

From 2020 to 2025, the Australian data centre market is projected to register a CAGR of approximately 4.5 percent, according to MarketWatch. Key drivers include the increasing use of cloud services by the private and government sectors; infrastructure built by cable networks; and hyperscale public cloud service providers.

The primary driver of Australia’s data centre demand is the increasing data in the continent. IP traffic was projected to reach 1.9 exabytes (EB) per month in 2020, up from 711 petabytes (PB) per month in 2015. Furthermore, its IP traffic will increase go up to 22.5 EB per year in 2020, up from 8.5 EB per year in 2015.

Data Centre Dynamics recently reported that Microsoft is planning a new data centre campus in Melbourne. The new development, called MEL4, will be right beside MEL5, a much larger data centre that is yet to be put forward to the City of Maribyrnong.

The facility is a two-storey building with an estimated 53,800 sq ft of data storage and plant area, as well as 12,900 sq ft of ancillary office area.

More: Sydney & Melbourne CBDs experience a surge in demand for office space

Australian Prime Minister Scott Morrison officially opened the sovereign Intellicentre 3 East facility of Macquarie Data Centre in Sydney recently, DataCenter News reported.

The project got an initial investment of over AUD85 million (USD64.8 million) and supported more than 1,200 construction, engineering, cybersecurity, and IT employment during the pandemic. 

At the opening, the Prime Minister said, “The fact is, the security of our critical digital infrastructure goes hand-in-hand with our national resilience. As we do more business online – and hold more information online – ensuring the protection of our data and our networks is more critical than ever.”

Data centres are in high demand as a result of increased data generation from modern technologies such as the cloud and IoT devices. 

The Property Report editors wrote this article. For more information, email: [email protected].

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