New data centre construction in Australia is rapidly increasing, driven by surging demand for Artificial Intelligence (AI) and cloud services, with major investments from tech giants like Amazon (AWS) and initiatives from Australian operators such as NEXTDC and Macquarie Data Centres.
Melbourne is a leading hub for this growth, with a significant portion of new supply under construction, and locations like Sydney’s Macquarie Park are also seeing major developments, including the first AI factories for sovereign capabilities.
This expansion is also supported by government efforts to fast-track approvals and significant investments in renewable energy to power the growing infrastructure.
Key Trends and Developments
- AI-Driven Growth:The exponential rise in generative AI has become a primary driver for new data centre builds, requiring significant power and advanced infrastructure.
- Major Investments:
- Amazon (AWS) pledged an additional A$20 billion for new data centres in Sydney and Melbourne and associated solar farms, according to Information Age | ACS.
- Microsoft announced in 2023 a commitment to build nine new data centres in Australia, says Information Age | ACS.
- Australian operators like NEXTDC are investing heavily.
- Key Locations:
- Melbourne: Is becoming a major hub for hyper-scale data centres, with a large portion of the new supply being concentrated in the city.
- Sydney: Is also a focal point, with developments like Macquarie Data Centres’ IC3 Super West facility and NEXTDC’s S6 Sydney AI factory.
- Government Support:The federal government is working to expand digital infrastructure, and the NSW government has launched an authority to fast-track approvals for major projects.
- Sovereign AI:There is a focus on building facilities that support sovereign AI capabilities, ensuring that data is stored and managed under national laws and to meet security requirements.
- Sustainability Efforts:New data centres are increasingly being paired with renewable energy projects, such as the solar farms planned by Amazon to help meet their increased energy demand, according to ArchitectureAndDesign.com.au.
Companies and Operators Involved
- Amazon Web Services (AWS): Investing significantly in new facilities in Sydney and Melbourne.
- NEXTDC: Building facilities across Australia, including the S6 AI factory in Sydney.
- Canberra Data Centres (CDC): Developing large-scale facilities in cities like Perth.
- Macquarie Data Centres: Developing large-scale AI and cloud data centres, such as IC3 Super West in Sydney.