The Australia Colocation market will grow at a CAGR of 19.85% from USD 2.409 billion in 2025 to USD 5.957 billion in 2030.
The increasing number of data centers, favourable regulation coupled with good infrastructural facilities, and the high internet penetration rate in the country are majorly driving colocation market expansion in Australia.
Moreover, the favourable investments in the Internet of Things (IoT), growing internet traffic coupled with booming virtual entertainment, and online surfing have further bolstered the demand for colocation data centers for exercising efficient data storage and security.
Data centers constitute one of the major parts of digital infrastructure, and with signs of future investment in digitization in Australia, especially in the corporate environment, the demand for colocation is expected to grow. Moreover, with the rapid urbanization and investments in digital innovations, the demand for appropriate digital infrastructure to store necessary data, especially for corporations, is anticipated to increase in Australia. According to the World Bank’s data, Australia’s urban population reached 22,491,671, which represented a 1.7% growth over the 2020 population figure.
Additionally, investment to bolster industry 4.0, cloud computing, and virtual environment has provided a wider scope for the expansion of colocation services in the coming years.
Australia’s internet penetration is witnessing an upward trajectory fueled by booming online transactions, be it for online shopping and day-to-day surfing. According to the Australian Communication and Media Authority, in the first six months of 2023, 98% of Australian adults had home internet access, inclusive of 4G and 5G. Government initiatives in the IT sector, coupled with the development and emergence of 5G, are further expected to drive the colocation services throughout the forecast period.
Moreover, there is a surge in smartphone penetration and usage of smart devices, especially for going online. For instance, as per the Australian Communication and Media Authority, till June 2023, smartphones were the most used devices for adults to connect to the internet. The Capex (capital expenditure) investments in the country are also expected to boost the telecommunications industry, which has been projected to propel growth for the colocation market.
Australia Colocation Market Segmentation: