{"id":540462,"date":"2026-09-16T10:15:14","date_gmt":"2026-09-16T00:15:14","guid":{"rendered":"https:\/\/www.vibewire.com.au\/?p=540462"},"modified":"2026-09-16T10:25:47","modified_gmt":"2026-09-16T00:25:47","slug":"melbourne-has-become-the-fastest-growing-data-centre-market-in-the-asia-pacific","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=540462","title":{"rendered":"Melbourne Has Become the Fastest-Growing Data Centre Market in the Asia-Pacific"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Melbourne has quietly become one of the standout stories in the entire Asia-Pacific data centre market, and the numbers back up the hype. CBRE&#8217;s most recent regional analysis found Melbourne posted 37% year-on-year growth in live data centre capacity in 2025 \u2014 the second-fastest growth rate of any market in the region, behind only Malaysia&#8217;s Johor, and well ahead of established hubs like Singapore and Hong Kong, which grew just 6-8% over the same period. CBRE described the region as undergoing &#8220;a significant reordering,&#8221; naming Australia alongside India as a lead driver of that shift.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Equinix&#8217;s Global Interconnection Index goes further still, naming Melbourne the fastest-growing edge metro in the&nbsp;<em>world<\/em>\u2014 interconnection bandwidth growing at a 45% compound annual rate to reach a projected 102 terabits per second by 2026, up from 35 Tbps in 2023.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The scale being built reflects this momentum. Knight Frank&#8217;s latest Asia-Pacific Data Centre report puts Melbourne&#8217;s live IT capacity at 337.1MW, up 25.4% year-on-year, backed by a committed-and-under-construction pipeline of 934.8MW and roughly $13 billion in investment. AI workloads made up 95% of all new capacity transacted in Melbourne in the first half of 2025, and the city now hosts dedicated cloud regions from all four major US hyperscalers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Melbourne&#8217;s connectivity backbone is expanding in step with the compute. <a href=\"https:\/\/www.inligonetworks.com\">Inligo Networks<\/a>, Australian-owned with its Australian headquarters in Melbourne&#8217;s CBD, is rolling out the Unite Cable System to link Melbourne with Sydney, Adelaide, Darwin and Canberra, while also connecting into Australia&#8217;s main subsea cable gateways at Darwin, Sydney and Melbourne \u2014 stitching the country&#8217;s AI hubs into one high-capacity network rather than isolated pockets. Melbourne headquartered <a href=\"https:\/\/www.telstra.com.au\" target=\"_blank\" rel=\"noopener\">Telstra<\/a>, is building a parallel intercity dark fibre link, the Aura Network, connecting Melbourne, Canberra, Sydney and Perth to serve the same east-coast AI hub cluster. Together, this gives Melbourne&#8217;s compute buildout a genuine low-latency backbone to the rest of the country rather than operating as a standalone cluster.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The committed project pipeline underlines where this is heading. <a href=\"https:\/\/www.nextdc.com\" target=\"_blank\" rel=\"noopener\">NextDC<\/a> has disclosed 1,200 megawatts of planned capacity for its M5 site alone, alongside its M4 Fishermans Bend campus. Keppel has advanced a $10 billion, 720-megawatt campus near the former Hazelwood power station. Nvidia&#8217;s partnership with Firmus Technologies on Project Southgate is valued at $2.9 billion, with its Melbourne phase alone worth $4.5 billion. Syncline Energy is building a 2.4-gigawatt precinct at Plumpton, and NextDC&#8217;s $165 million Lovely Banks acquisition signals a serious push into the <a href=\"https:\/\/www.vibewire.com.au\/?tag=geelong\" target=\"_blank\" rel=\"noopener\">Geelong<\/a> corridor too.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Growth rates, land availability, power access, hyperscaler commitment, and now dedicated fibre connectivity all point the same way: more data centres, at greater scale, are coming to Melbourne and Victoria over the next five years than almost anywhere else in the region.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CBRE&#8217;s most recent regional analysis found Melbourne posted 37% year-on-year growth in live data centre capacity in 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