Australia Data Center Colocation Market is expected to reach US$ 7,885.00 million by 2028

Growing Need to Reduce Overall IT Costs Boosts Australia Data Center Colocation Market Growth

According to our latest study on “Australia Data Center Colocation Market Forecast to 2028 – COVID-19 Impact and Country Analysis – by Type, Enterprise Size, and Industry,” the 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.

SMEs and large enterprises save a lot of cost by renting a data center to store critical information rather than building their own. To set up a data center, a company requires a large investment in architecture, server management, upfront capital expenditure, energy cost, operations, IT staffing, hardware, and more. On-site management of data center infrastructure requires highly skilled IT employees. It also incurs infrastructure maintenance and server management expenditures. Moreover, constructing a new data center facility needs high initial investments that increase the overall cost of enterprises. Thus, enterprises are becoming more considerate of the amount spent on constructing mission-critical data centers and seeking several methods to improve return on investment (ROI) and reduce cost. According to Intel, the estimated cost of colocation service is ~US$ 275,175 for 3 years, whereas it takes US$ 886,523 to build own data center. According to Iron Mountain Incorporated, building and managing a personal data center will need 25% more money than renting one. As a large number of enterprises are shifting their IT infrastructures to the cloud to attain zero downtime and address the need to reduce IT infrastructure expenses, high-power and physical security requirements serve as major elements, driving the data center colocation market.

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

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Data center colocation providers provide high-tech infrastructure, services, space, power, bandwidth, internet solutions, hardware services, and more, which benefits the companies and gives more return on investment (ROI) than the personal on-site data center. Such services by the market players help the companies reduce the overall operational expenditure and maximize their ability to focus more on their core business. Thus, companies and enterprises opt for colocation services to reduce overall IT costs, which is propelling the Australia Data Center Colocation Market growth.

The Australia Data Center Colocation Market is segmented based on type, enterprise size, and industry. Based on type, the Australia Data Center Colocation Market is segmented into retail and wholesale. Based on enterprise size, the Australia Data Center Colocation Market is bifurcated into small & medium sized enterprises and large enterprises. Based on industry, the Australia Data Center Colocation Market is segmented into IT & telecom, BFSI, healthcare, retail, and others.

Impact of COVID-19 Pandemic on Australia Data Center Colocation Market Growth

The impact of the COVID-19 pandemic on Australian industries was severe. However, the COVID-19 pandemic positively impacted the Australia Data Center Colocation Market as organizations began to adopt cloud-based services, digitalization initiatives, and remote working. Organizations increasingly adopted data center colocation to avoid costly constructions and hardware installations. Furthermore, drastic growth in the demand for cloud platforms for educational purposes, an increase in aggressive gaming, and a rise in video streaming consumption bolstered the Australia Data Center Colocation Market growth during the pandemic.

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; and Fujitsu Australia Ltd are among the key players operating in the data center colocation market. 

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