Australia Data Center Colocation Market to Reach USD 4.98 Billion by 2030, with Over 37 New Facilities Slated Across the Country.

The Australia data center colocation market is expected to reach USD 4.98 billion by 2030, growing at a CAGR of 19.39%. The market currently has around 145 operational colocation data center facilities, with over 37 new facilities planned across various cities. The Privacy Act 1988 in Australia regulates personal data storage and processing, boosting confidence in colocation data centers. The market is expected to see significant growth due to increasing demand for data storage and processing, as well as the development of new industrial parks and data center facilities.

The Asia Pacific (APAC) data center colocation market is poised for substantial growth, with a projected Compound Annual Growth Rate (CAGR) of 17.25% from 2024 to 2030 [1]. This expansion is driven by technological advancements and a rising demand for high-performance data infrastructure. Major markets include China, Hong Kong, Australia, Japan, India, and Singapore, with emerging markets like Malaysia and South Korea witnessing increased investments.

A key trend in the APAC market is the adoption of Hydrotreated Vegetable Oil (HVO) fuel for backup generators. HVO is a renewable diesel produced from waste vegetable oils and animal fats, offering a low-carbon alternative to diesel fuel. Bridge Data Centres, for instance, has entered into a Memorandum of Understanding (MoU) with EcoCeres to explore the use of HVO in its backup generation systems [1].

Another significant trend is the integration of Artificial Intelligence (AI) and Machine Learning (ML) technologies. The APAC region is a leading hub for generative AI, with data center operators developing AI-ready infrastructure to accommodate rapidly growing AI workloads. Companies like Equinix and Digital Realty are investing in AI development to enhance their service offerings [1].

The market is also characterized by innovative data center technologies, such as floating data centers and advanced cooling solutions. For example, a consortium of Japanese companies planned to launch a demonstration project for an offshore floating data center off Yokohama's coast in March 2025 [1].

As of June 2025, there were over 850 existing third-party data center facilities in the APAC region, excluding China, operated by more than 220 companies. Over 360 new facilities are currently in the planning and development stages, with contributions from over 180 operators [1].

China is the top market in the APAC region, with a share of around 46% of the overall colocation investments in 2024. Japan, with over 10.09% of the total colocation revenue generated in 2024, is the second-largest contributor to the market [1].

Prominent colocation operators in the APAC market include AirTrunk, ST Telemedia, Equinix, and Digital Realty. New entrants such as Ada Infrastructure, CloudHQ, and CyrusOne are also making significant contributions to the market growth [1].

The APAC data center colocation market is expected to witness tremendous growth, driven by factors such as increasing demand for data storage and processing, and the development of new industrial parks and data center facilities. This growth presents multiple investment opportunities for stakeholders.

References:
[1] https://finance.yahoo.com/news/apac-data-center-colocation-market-114100059.html