New M3 Property research shows demand for data centre facilities is rapidly increasing across Australia
Our latest report, Data Centre Growth in Australia, investigates the growing demand for data centre facilities across Australian property markets. The research follows the announcement that Australian data centre firm AirTrunk has been bought out by Blackstone and the Canada Pension Plan Investment Board (CPP Investments) for over AUD24 billion in one of the biggest deals in recent years involving a technology company, reflecting the significant demand for data centres as an asset class.
The report finds that there are currently 135 operational co-location data centres in Australia, with existing centres in Sydney, Melbourne, Brisbane, Perth, Adelaide and Canberra, and an estimated 183,000 square metres of space under construction. Close to three quarters of the new supply will be in Melbourne with the remainder in Sydney. Over the coming decade, further supply is also expected to extend to markets including Canberra and Brisbane, according to the report.
James Ruben, National Director, Specialised Assets at M3 Property, said, “Traditionally data centres have been an ancillary use of office, retail or industrial property. However, this is changing with the rapidly growing demand for data centres in Australia. In addition to data storage, new technologies such as AI and 5G, the growth of e-commerce, data security requirements and the need for companies to provide reliable and secure IT and data services to a workforce that is more likely to work from home is leading to the need for developers to build bigger and more secure purpose-built data centres.”
Despite this demand, the sector is facing issues. “While data centre facilities are seeing increasing demand from both users and investors in major property markets, the sector is also facing several key challenges. These include finding suitable land for new developments, access to adequate and steady power supply, and increasing construction costs,” said Mr Ruben.
View the full report below.
Data Centre Growth in Australia Research Report – September 2024
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Data Centre Growth in Australia
New M3 Property research shows demand for data centre facilities is rapidly increasing across Australia Our latest report, Data Centre Growth in Australia, investigates the growing demand for data centre facilities across Australian property markets. The research follows the announcement that Australian data centre firm AirTrunk has been bought out by Blackstone and the Canada …
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