The digital revolution is upon us, and Australia is positioned to be a global leader in the data centre boom. According to Cushman & Wakefield’s prestigious 2024 Global Data Centre Market Comparison, Sydney secured an impressive ninth place among the top 10 global data centre markets and a third-place ranking in the entire Asia-Pacific region. This ranking considers 14 crucial factors, including power availability, land cost, fibre optic connectivity, and the presence of major cloud providers.
According to the Cushman & Wakefield study, Sydney currently sits at 17th in terms of operational IT load, and highlights its immense potential for future growth. The city boasts the sixth position when considering combined IT load under construction or planned. This exciting outlook is fueled by Sydney’s strategic advantage – its multiple subsea cables connecting it to various international locations. Currently, 11 cables serve the city, with an additional three slated for completion by the end of 2026.
Why is Australia such a hot spot for data centres?
The answer lies partly in the ever-growing power of Artificial Intelligence. AI applications are data-hungry, requiring high-performance computing for processing, analysis, and efficient storage of vast amounts of data. Think of it this way – according to the Electric Power Research Institute, a single ChatGPT query consumes 10 times more energy than a standard Google search!
To meet these demands, data centres need a robust infrastructure. This includes:
- Data centres, particularly large hyperscale facilities, require significant and reliable power supplies.
- Uninterrupted operations are critical. Backup generators ensure data centres can keep running smoothly even in case of power outages.
- These networks act as the highways for data, enabling efficient transfer and communication between servers. Low latency is essential for smooth operation.
By providing consistent connectivity and resiliency, data centres become trusted partners for their clients. However, their growing power needs are putting a strain on the national grid.
As a result, access to dependable power has become a top priority for both data centre operators choosing locations and electricity providers planning their networks.
The takeaway? Australia’s data centre market is booming, driven by AI advancement and the need for efficient data storage solutions. Sydney, with its strong infrastructure and strategic location, is at the forefront of this growth. Understanding these trends is crucial for investors and businesses looking to capitalise on this exciting opportunity in the evolving commercial property landscape.