Australia Data Center Colocation Market to Grow at a CAGR of 17.2% to reach US$ 7,885.00 million from 2023 to 2028

Australia Data Center Colocation Market Forecast to 2028 - Country Analysis By Type (Retail and Wholesale), Enterprise Size (Small and Medium Sized Enterprises and Large Enterprises), and Industry (IT and Telecom, BFSI, Healthcare, Retail, and Others)

  • Report Code : TIPRE00029890
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 120
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Australia Data Center Colocation Market to Grow at a CAGR of 17.2% to reach US$ 7,885.00 million from 2023 to 2028

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The Australia data center colocation market is projected to grow from US$ 3,094.62 million in 2022 to US$ 7,885.00 million by 2028; it is expected to record a CAGR of 17.2% from 2023 to 2028.

A data center colocation is a third-party leased facility where businesses rent space for servers and other equipment to store data. These servers and equipment are managed by a data center colocation provider. The providers offer the infrastructure, power, cooling, bandwidth, and security to the enterprises. The enterprises rent the space by the cabinet, rack, cage, or room. Using data center colocation facilities helps reduce the costs of IT services, power consumption, and cooling costs. It also offers power and high internet connectivity, which assists in maximizing uptime. Moreover, colocation facility providers provide data security for situations such as power outages. 

Data center colocation providers offer flexible and scalable solutions that can be customized according to the changing needs and business expansion of the customers. They can quickly provide additional space, power, and connectivity required by the companies to scale their IT infrastructure and business needs. Data centers offer high security for their facilities, including video surveillance and access controls, which provide customers with trust that their data will be safe in the data center colocation infrastructure. It ensures 24x7x365 remote services to keep systems up and running regularly. All these factors boost the adoption of data center colocation services and accelerates the Australia data center colocation market growth.

The rising demand for digital services, cloud computing, and big data analytics is driving the need for high-performance and scalable, secure data center infrastructure. In addition, many organizations are migrating their workloads to the cloud. This has led to an increase in demand for colocation services, as companies require data center infrastructure to support their cloud-based applications and services. Moreover, the increased volume of data generated needs to be processed by organizations. This requires a high-performance computing infrastructure that can handle a large volume of data and provides real-time insights, which can be provided by data center colocation providers. Thus, the growing adoption of technologies is propelling the Australia data center colocation market growth in Australia.

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Australia Data Center Colocation Market: Strategic Insights

australia-data-center-colocation-market
Market Size Value inUS$ 3,094.62 million in 2022
Market Size Value byUS$ 7,885.00 million by 2028
Growth rateCAGR of 17.2% from 2023 to 2028
Forecast Period2023-2028
Base Year2022
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The key stakeholders in the Australia data center colocation market are land providers, real estate, colocation facility providers, managed service providers, security service providers, cloud providers, and end users. The land and real estate provide basic building infrastructure for data center construction. The data center colocation service providers offer racks, cross-connects, facility management, power & cooling, helpdesk, and other facilities. The major players operating in the Australia data center colocation market include Equinix, Inc.; Macquarie Telecom Group; Digital Realty Trust; Keppel Corporation Limited; Servers Australia; Zenlayer Inc.; Global Switch; RACKSPACE TECHNOLOGY; NEXTDC LTD.; and Fujitsu. Over the years, these organizations have increased their investment in the development of new and advanced data center colocation as per the growing customer needs. A managed service provider provides virtualization, network management, and servers, among others. Security service providers play a key role in the ecosystem. The end users are the final stakeholders of the Australia data center colocation market. The end-users include key customers from various industries, such as IT & telecom, BFSI, healthcare, and retail, that use the data center colocation services.

Australia Data Center Colocation Market – Revenue and Forecast to 2028 (US$ Million)

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Source: The Insight Partners Analysis

Market Insights – Australia data center colocation market

Hybrid Clouds in Colocation Data Centres to Drive Australia data center colocation market in Coming Years

Hybrid cloud in Australia data center colocation market refers to the combination of in-house and outsourced data center services, where businesses will take advantage of cloud resources while having a stronghold on their data in the colocation facility. By combining private and public cloud resources with colocation services, businesses can easily scale up or down their infrastructure as needed without investing in additional hardware and resources. The hybrid architectures with collocated infrastructure provide easy integration with cloud interconnects, which improves the performance of data exchange between colocation data centers and public clouds. These interconnections are important when workloads are distributed between the colocation center and the cloud. Such factors contributes to the growth of the Australia data center colocation market. In addition, a hybrid-based framework provides public management tools such as CloudWatch for better management of workloads in a colocation facility. These will benefit the organization that has a public cloud and does not want to invest more in management tools for the colocation facility. Moreover, hybrid cloud-based colocation will help reduce the IT cost of businesses. It will enhance greater control over the data and applications and leverage the security and benefits over cloud-based services. It also helps reduce the latency by providing direct access to public cloud resources from their data centers. Overall, it provides greater flexibility, scalability, cost saving, security, and reduced latency, which will contribute to the adoption of hybrid cloud-based colocation, which is expected to boost the Australia data center colocation market growth in Australia in coming years.

To stay competitive in the Australia data center colocation market ecosystem, market players mainly adopt inorganic growth strategies.

  • In 2023, Equinix Inc announced a new data center in Barcelona, which will serve as a strategic connection point for data communications between Europe, Africa, and the Middle East. Such new data centers will further contribute to the Australia data center colocation market growth.
  • In 2020, Fujitsu Australia is expanding its data center capacity in western Sydney with 4,500 sq. m of technical area and 20 MW capacity. This expansion aims to increase the hyperscale capabilities of the company and contributed to the growth of the Australia data center colocation market.

Market players profiled in Australia data center colocation market report are:

  • Equinix, Inc.
  • Macquarie Telecom Group Ltd
  • Digital Realty Trust Inc
  • Keppel Data Centres Pte Ltd
  • Servers Australia Pty Ltd
  • Zenlayer Inc
  • Global Switch Ltd
  • Rackspace Technology Inc
  • NEXTDC Ltd
  • Fujitsu Australia Ltd
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Type, Enterprise Size, and Industry

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

This text is related
to country scope.

Frequently Asked Questions


What will be the size for Australia data centre colocation market by 2028?

Australia data centre colocation market is expected to reach US$ 7885.00 Mn by 2028.

Which are the key players holding the major market share of Australia data centre colocation?

The key players, holding majority shares, in Australia data centre colocation market includes Equinix, Inc.; Digital Realty Trust Inc; Fujitsu Australia Ltd; Rack space Technology Inc; and NEXTDC Ltd

What are the future trends of the Australia data centre colocation?

Hybrid clouds in colocation data centres and rise in inclination towards green data centres is anticipated to play a significant role in conducting Australia data centre colocation market in the coming years.

What are the driving factors impacting the Australia data centre colocation?

Growing need to reduce overall IT costs and adoption of technologies such as IoT, and cloud are the major factors that propel the Australia data centre colocation market growth.

What is the estimated market size for the Australia data centre colocation in 2022?

Australia data centre colocation was estimated to be US$ 3094.62 Mn million in 2022 and is expected to grow at a CAGR of 17.2 %, during the forecast period 2023 - 2028.

1. Introduction

1.1 Study Scope

1.2 The Insight Partners Research Report Guidance

1.3 Market Segmentation

2. Key Takeaways

3. Research Methodology

3.1 Coverage

3.2 Secondary Research

3.3 Primary Research

4. Data Center Colocation Market Landscape

4.1 Market Overview

4.2 PEST Analysis

4.3 Ecosystem Analysis

4.4 Expert Opinion

5. Data Center Colocation–Market Dynamics

5.1 Market Drivers

5.1.1 Growing Need to Reduce Overall IT Costs

5.1.2 Adoption of Technologies such as IoT, and Cloud

5.2 Market Restraints

5.2.1 High Cost for Installation and Maintenance

5.3 Market Opportunities

5.3.1 Growing Advent of 5G

5.4 Future Trends

5.4.1 Hybrid Clouds in Colocation Data Centres

5.4.2 Rise in Inclination Towards Green Data Centers

5.5 Impact Analysis of Drivers and Restraints

6. Data Center Colocation Market – Australia Analysis

6.1 Data Center Colocation Market: Australia Overview

6.2 Data Center Colocation Market – Revenue and Forecast to 2028 (US$ Million)

6.3 Market Positioning

7. Data Center Colocation Market Analysis – By Type

7.1 Overview

7.2 Data Center Colocation Market Breakdown, by Type, 2022 & 2028

7.3 Retail

7.3.1 Overview

7.3.2 Retail: Data Center Colocation Market – Revenue, and Forecast to 2028 (US$ Million)

7.4 Wholesale

7.4.1 Overview

7.4.2 Wholesale: Data Center Colocation Market – Revenue, and Forecast to 2028 (US$ Million)

7.4.3 Hyperscalers and Channel Resellers

8. Data Center Colocation Market Analysis – By Enterprise Size

8.1 Overview

8.2 Data Center Colocation Market Breakdown, by Enterprise Size, 2022 & 2028

8.3 Small And Medium Sized Enterprises

8.3.1 Overview

8.3.2 Small And Medium Sized Enterprises: Data Center Colocation Market – Revenue, and Forecast to 2028 (US$ Million)

8.4 Large Enterprises

8.4.1 Overview

8.4.2 Large Enterprises: Data Center Colocation Market – Revenue, and Forecast to 2028 (US$ Million)

9. Data Center Colocation Market Analysis – By Industry

9.1 Overview

9.2 Data Center Colocation Market Breakdown, by End-User, 2022 & 2028

9.3 IT and Telecom

9.3.1 Overview

9.3.2 IT and Telecom: Data Center Colocation Market – Revenue, and Forecast to 2028 (US$ Million)

9.4 BFSI

9.4.1 Overview

9.4.2 BFSI: Data Center Colocation Market – Revenue, and Forecast to 2028 (US$ Million)

9.5 Healthcare

9.5.1 Overview

9.5.2 Healthcare: Data Center Colocation Market – Revenue, and Forecast to 2028 (US$ Million)

9.6 Retail

9.6.1 Overview

9.6.2 Retail: Data Center Colocation Market – Revenue, and Forecast to 2028 (US$ Million)

9.7 Others

9.7.1 Overview

9.7.2 Others: Data Center Colocation Market – Revenue, and Forecast to 2028 (US$ Million)

10. Impact Of COVID-19 Pandemic on Australia Data Center Colocation

10.1 Overview

10.2 Australia: Impact assessment of COVID-19 Pandemic

11. Industry Landscape

11.1 Overview

11.2 Market Initiative

11.3 New Product Development

12. Company Profiles

12.1 Macquarie Telecom Group Ltd

12.1.1 Key Facts

12.1.2 Business Description

12.1.3 Products and Services

12.1.4 Financial Overview

12.1.5 SWOT Analysis

12.1.6 Key Developments

12.2 Keppel Data Centres Pte Ltd

12.2.1 Key Facts

12.2.2 Business Description

12.2.3 Products and Services

12.2.4 Financial Overview

12.2.5 SWOT Analysis

12.2.6 Key Developments

12.3 Servers Australia Pty Ltd

12.3.1 Key Facts

12.3.2 Business Description

12.3.3 Products and Services

12.3.4 Financial Overview

12.3.5 SWOT Analysis

12.3.6 Key Developments

12.4 Zenlayer Inc

12.4.1 Key Facts

12.4.2 Business Description

12.4.3 Products and Services

12.4.4 Financial Overview

12.4.5 SWOT Analysis

12.4.6 Key Developments

12.5 Global Switch Ltd

12.5.1 Key Facts

12.5.2 Business Description

12.5.3 Products and Services

12.5.4 Financial Overview

12.5.5 SWOT Analysis

12.5.6 Key Developments

12.6 Rackspace Technology Inc

12.6.1 Key Facts

12.6.2 Business Description

12.6.3 Products and Services

12.6.4 Financial Overview

12.6.5 SWOT Analysis

12.6.6 Key Developments

12.7 NEXTDC Ltd

12.7.1 Key Facts

12.7.2 Business Description

12.7.3 Products and Services

12.7.4 Financial Overview

12.7.5 SWOT Analysis

12.7.6 Key Developments

12.8 Fujitsu Australia Ltd

12.8.1 Key Facts

12.8.2 Business Description

12.8.3 Products and Services

12.8.4 Financial Overview

12.8.5 SWOT Analysis

12.8.6 Key Developments

12.9 Equinix Inc

12.9.1 Key Facts

12.9.2 Business Description

12.9.3 Products and Services

12.9.4 Financial Overview

12.9.5 SWOT Analysis

12.9.6 Key Developments

12.10 Digital Realty Trust Inc

12.10.1 Key Facts

12.10.2 Business Description

12.10.3 Products and Services

12.10.4 Financial Overview

12.10.5 SWOT Analysis

12.10.6 Key Developments

13. Appendix

13.1 About The Insight Partners

13.2 Glossary of Terms

LIST OF TABLES

Table 1. Data Center Colocation Market – Revenue and Forecast to 2028 (US$ Million)

Table 2. Australia Data Center Colocation Market, Revenue and Forecast To 2028 – By Type (US$ Million)

Table 3. Australia Data Center Colocation Market, Revenue and Forecast To 2028 – By Enterprise Size (US$ Million)

Table 4. Australia Data Center Colocation Market, Revenue and Forecast To 2028 – By Industry (US$ Million)

Table 5. Glossary of Term: Data Center Colocation Market

LIST OF FIGURES

Figure 1. Data Center Colocation Market Segmentation

Figure 2. The Australia Data Center Colocation Overview

Figure 3. Retail Segment to Show Remarkable Traction During Forecast Period

Figure 4. Small & Medium Sized Enterprises Segment to Dominated the Market

Figure 5. IT and Telecom Segment to Dominated the Market

Figure 6. Australia – PEST Analysis

Figure 7. Ecosystem Analysis

Figure 8. Expert Opinion

Figure 9. Data Center Colocation Market Impact Analysis of Drivers, Restraints, and Trend

Figure 10. Data Center Colocation Market – Revenue and Forecast to 2028 (US$ Million)

Figure 11. Five Key Players

Figure 12. Data Center Colocation Market Breakdown, by Type (2022 and 2028)

Figure 13. Retail: Data Center Colocation Market – Revenue, and Forecast to 2028 (US$ Million))

Figure 14. Wholesale: Data Center Colocation Market – Revenue, and Forecast to 2028 (US$ Million))

Figure 15. Data Center Colocation Market Breakdown, by Enterprise Size (2022 and 2028)

Figure 16. Small And Medium Sized Enterprises: Data Center Colocation Market – Revenue, and Forecast to 2028 (US$ Million))

Figure 17. Large Enterprises: Data Center Colocation Market – Revenue, and Forecast to 2028 (US$ Million))

Figure 18. Data Center Colocation Market Breakdown, by End-User (2022 and 2028)

Figure 19. IT and Telecom: Data Center Colocation Market – Revenue, and Forecast to 2028 (US$ Million))

Figure 20. BFSI: Data Center Colocation Market – Revenue, and Forecast to 2028 (US$ Million))

Figure 21. Healthcare: Data Center Colocation Market – Revenue, and Forecast to 2028 (US$ Million))

Figure 22. Retail: Data Center Colocation Market – Revenue, and Forecast to 2028 (US$ Million))

Figure 23. Others: Data Center Colocation Market – Revenue, and Forecast to 2028 (US$ Million))

Figure 24. Impact of the COVID-19 Pandemic in the Australia Market

The List of Companies - Australia Data Center Colocation Market

  1. Equinix, Inc.
  2. Macquarie Telecom Group Ltd
  3. Digital Realty Trust Inc
  4. Keppel Data Centres Pte Ltd
  5. Servers Australia Pty Ltd
  6. Zenlayer Inc
  7. Global Switch Ltd
  8. Rackspace Technology Inc
  9. NEXTDC Ltd
  10. Fujitsu Australia Ltd

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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