DataCenterNews Asia logo
Specialist data center news for Asia
Story image

Cloud providers & outsourcing driving AU data center demand, report says

By Julia Gabel
Mon 25 Sep 2017
FYI, this story is more than a year old

Massive-scale cloud providers are driving demand in the Sydney and Melbourne data center markets, and the Australian market is seeing strong demand because local requirements are best served in-country and enterprises in the market are more outsource-friendly than in other Asia-Pacific markets. 

These are the main findings from Structure Research's recently released Australian data center research report.

The report reviews the Sydney and Melbourne colocation markets, tracking market size and growth trajectory and provides a five-year CAGR projection, along with a detailed analysis of the underlying supply and demand trends.

Structure Research’s proprietary methodology measures colocation supply from both a space and power perspective with the firm splitting the market between retail and wholesale colocation.

For both markets, the findings show that the retail-wholesale composition is quite similar: both regions have larger retail colocation markets but the directional trend is towards wholesale and the markets should be about evenly split by 2021.

Moreover, the report finds that growth trajectories and utilization rates of Sydney and Melbourne are also headed in a similar direction.

In 2016, Structure Research predicted that the Sydney colocation market would be worth US $360m, growing at 12% y/y in 2017.

On the other hand, in Melbourne, the research firm expected the market to be worth US $119m with a projected growth rate of 9% y/y.

Overall, the report finds that demand in the Melbourne and Sydney data center markets is driven by the massive-scale cloud providers.

In addition, other contributing factors to the nation’s growing colocation market is its unique geographic location and mature economy.

Microsoft and Amazon both have an established presence with Microsoft expanding rapidly. Google and Alibaba have also established data center footprints in Australia and are expected to grow at an accelerated pace for the next twelve months, the report states.

Key takeaways from the report include:
  • The Sydney colocation market generated an estimated US$380m (A$500m) in 2016 and is projected to grow 12% y/y in 2017.
  •  Structure Research projects the Sydney Colocation market will grow at 13% compound annual growth rate (CAGR) to US$700m (A$922m) by 2021.
  • The Structure Research report focuses specifically on the outsourced data center colocation services market and counts 33 colocation providers in Sydney, including providers with their own data centers as well as sizable resellers. Cumulatively, these providers sell colocation space in 42 operational data centers today.
  • Equinix and Global Switch are the top two data center providers in Sydney with a combined market share of 34% from a revenue generation standpoint. Other top data center providers in Sydney include Telstra, Fujitsu, Macquarie Telecom, Keppel DC REIT, NEXTDC, Digital Realty, DCI Data Centers and Vocus Communications.
  • There are two new data centers set to come online in the Sydney market in the 2017-2018 timeframe totaling 80 MW of potential critical IT load capacity.
The facts - according to Structure Research: 

The Sydney colocation data center market by the numbers:

  • Number of data center  providers (2016): 33
  • Number of unique operational data center (2016): 42
  • Total critical power capacity (2016): 140 MW
  • Total data center space (2016): 1.4 million square feet
  • Total rack capacity (2016): 40,000 racks/cabinets
  • Total 2016 colocation services revenue: US$380m (A$500m)
  • Total 2021 projected colocation services revenue: US$700m (A$922m) – 13% CAGR

​​

The Melbourne colocation data center market by the numbers:

  • Number of data center providers (2016): 23
  • Number of unique operational data centers (2016): 30
  • Total critical power capacity (2016): 57 MW
  • Total data center space (2016): 400,000 square feet
  • Total rack capacity (2016): 14,000 racks/cabinets
  • Total 2016 colocation services revenue: US$124m (A$163m)
  • Total 2021 projected colocation services revenue: US$255m (A$335m) – 16% CAGR

The report outlines the top international providers as Equinix, Global Switch, Fujitsu, Keppel DC REIT, Digital Realty Trust and DCI Data Centers.

It also names the top local Singapore providers as Telstra, Metronode, NEXTDC, Macquarie Telecom, AirTrunk and Vocus Communications.

Related stories
Top stories
Story image
Macquarie Data Centres
Macquarie deal to pioneer CO2-cutting data centre tech in Australia
Macquarie Data Centres has signed a multi-year deal with ResetData, an Australian first provider using Submer data centre technology. 
Story image
Migration
SNP unveils next generation of CrystalBridge software platform
Data is a key pillar of every customer-centric organisation, as it relies on agile decisions to become increasingly sustainable and intelligent.
Story image
Cybersecurity
Zscaler launches co-located data centres in Canberra and Auckland
The investment will offer public and private sector enterprises greater resilience in support of their zero trust cybersecurity posture.
Story image
Hybrid Cloud
HPE GreenLake advances hybrid cloud experience with new services
"The innovations unveiled today further build on our vision to provide the market with an unmatched platform to spur innovation and drive transformation.”
Story image
Cloud
SnapLogic improves Intelligent Integration Platform
SnapLogic has released new features and improvements to its Intelligent Integration Platform, which will allow IT, data and business teams to make select processes faster and more straightforward.
Story image
Sydney
Equinix and PGIM Real Estate open data centre in Sydney
Equinix and PGIM Real Estate, the real estate investment and financing arm of PGIM, have announced the first xScale data centre in Sydney, named SY9x.
Story image
Healthcare
SnapLogic launches Accelerator for Amazon HealthLake
SnapLogic has launched Accelerator to allow healthcare and life sciences organisations to turn raw data into healthcare-related insights and actions.
Story image
Sustainability
Intel unveils new investments for data center sustainability
Intel has announced two new investments, continuing its efforts to create more sustainable data center technology.
Story image
Infrastructure
New Uptime analysis highlights worsening downtime costs and consequences
New data from Uptime Institute has found that downtime costs and consequences are worsening as those involved in data infrastructure fail to find ways to curb outages.
Story image
Artificial Intelligence
Databricks announces new offering for Unity Catalog
Databricks has significantly expanded data governance capabilities on the lakehouse by unveiling data lineage for Unity Catalog.
Story image
Cloud
QuSecure partners with DataBridge Sites to showcase platform
QuSecure has partnered with DataBridge Sites to showcase its Quantum-as-a-Service (QaaS) orchestration platform, QuProtect.
Story image
Infrastructure
SolarWinds IT Trends Report highlights increased cloud complexity for businesses
SolarWinds' new IT Trends report has signalled a significant shift in the way businesses are dealing with hybrid cloud and infrastructure.
Story image
Secure access service edge / SASE
Cisco unveils new cloud-managed networking offerings
Cisco has announced new cloud management capabilities that offer a unified experience across the Cisco Meraki, Cisco Catalyst and Cisco Nexus portfolios.
Story image
Sustainability
Evolution Data Centres reveals target of 20 tonnes of CO2 per GWh
Evolution Data Centres launches their new Sustainable Data Centre Charter, which includes targets like only 20 tonnes of carbon emissions per GWh by 2030.
Story image
Expansion
Colt Technology expands into South Korea data center market
Colt Technology Services has expanded its network into the South Korean market, offering the country’s businesses cost-effective, low latency connectivity.
Story image
Employment
Tech job moves - Forcepoint, Malwarebytes, SolarWinds & VMware
We round up all job appointments from May 13-20, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Amazon Web Services / AWS
Qualtrics goes live on AWS Cloud Infrastructure in Japan
Organisations across Japan will now be able to access the Qualtrics XM/OS platform locally via data centre in the AWS Asia Pacific (Tokyo) region.
Story image
Colocation
Digital Edge chooses Nortek’s StatePoint for new data center
Digital Edge will use Nortek's StatePoint liquid cooling technology in its new data center, the first commercial colocation operator in Asia to do so.
Story image
Sustainability
Aligned Data Centers increases sustainability-linked loan
Aligned Data Centers has increased its sustainability-linked loan from $375 million to $1.75 billion to speed up the next phase of its strategic growth.
Story image
Digital Transformation
The Huawei APAC conference kicks off with digital transformation
More than 1500 people from across APAC have gathered for the Huawei APAC Digital Innovation Congress to explore the future of digital innovation.
Story image
Cloud
Cisco Live showcases new offerings in its first hybrid event
Cisco Live 2022 has seen Cisco executives and customers take the stage to present a range of discussions in the company’s first-ever hybrid event.
Story image
Data Science
Neo4j announces service delivery alliance with Deloitte
Neo4j has announced a service delivery alliance with Deloitte Consulting Southeast Asia for a range of services to customers within the region.
Story image
Cloud
Vertiv introduces line of redundant power transfer switches
Vertiv has introduced Vertiv Geist Rack Transfer Switch (RTS), a new line of transfer switches that provides redundant power to single-corded devices.
Story image
Sustainability
SoftIron named global leader for efficient DC infrastructure solutions
SoftIron has been named a global leader for supplying energy-efficient data infrastructure solutions for core-to-edge data centers after an assessment by Earth Capital Ltd.
Story image
Public Cloud
Public cloud services revenues top $400 billion in 2021
"For the next several years, leading cloud providers will play a critical role in helping enterprises navigate the current storms of disruption."
Story image
Cloud
Boomi surpasses 20,000 customers. Sets record for the iPaaS space
Boomi has announced it has surpassed the 20,000 customer mark, setting the record for the largest customer base among iPaaS vendors.
Story image
Infrastructure
Oracle Cloud Infrastructure expands distributed cloud services
“Distributed cloud is the next evolution of cloud computing, and provides customers with more flexibility and control in how they deploy cloud resources."
Story image
Robotic Process Automation / RPA
Micro Focus unveils Data Center Automation for SaaS delivery
MicroFocus has released Data Center Automation (DCA) for software-as-a-service (SaaS) delivery, offering more cost-effective vulnerability risk and IT compliance management.
Story image
Cloud
Talend introduces new data health solutions for businesses
Talend has announced its latest version of Talend Data Fabric, with the release of Talend Trust Score enabling data teams to establish a foundation for data health.
Story image
Infrastructure
Global investment in data centers more than doubled in 2021
DLA Piper's latest global survey finds the total investment in data center infrastructure worldwide rose from USD $24.4 billion in 2020 to USD $53.8 billion in 2021.
Story image
Microsoft
Microsoft, Cloudian partnership offers data center flexibility
Cloudian’s HyperStore object storage platform is now integrated and validated to work with Microsoft SQ Server 2022, offering more flexible and scalable data centers.
Story image
Sustainability
AirTrunk boosts Japan presence with West Tokyo data center
AirTrunk is planning to build TOK2, a new hyperscale data center in Japan which will strengthen the company’s presence in the country.
Story image
Broadband
Singapore found to have the speediest internet rates in the world
New research from BanklessTimes has shown that Singapore has the highest recorded median internet speed in the world at 207.61 MBPS.
Story image
Sustainability
Daikin and SP Group to build new energy efficient district cooling system
The project, set to be complete by 2025, will create a system with a cooling capacity of up to 36,000 refrigerant tonnes (RT). 
Story image
Infosys
Preparing for the digital decade with the right workforce strategies
For a decade that started under the pall of the pandemic, the 2020s is poised to end with a bang with the digital economy swelling to a high across the world.
Story image
Microsoft
SAS Viya on Microsoft Azure to deliver 204% return - study
The Forrester Total Economic Impact study finds SAS Viya on Microsoft Azure brings a 204% return on investment over three years.
Story image
Vietnam
Viettel IDC deploys Cloudian Hyperstore object storage for enhanced cloud solutions
Cloudian has announced that its Hyperstore object storage has been deployed by Vietnam telco Viettel IDC, citing the technology’s flexibility, multi-tenancy and ransomware protection as significant advantages.
Story image
Cybersecurity
Secureworks researches new threat to Elasticsearch databases
Researchers from Secureworks' Counter Threat Unit have identified indexes of multiple internet-facing Elasticsearch databases replaced with a ransom note.
Story image
Sustainability
Huawei unveils next-generation sustainable data centers
Huawei says its next-generation data centers will be powered by PowerPOD 3.0, which reduces the footprint by 40% and cuts the energy consumption by 70%.
Story image
CASB
Juniper expands SASE offering with data loss prevention capabilities
Juniper has announced the expansion of its SASE offering with the addition of cloud access security broker (CASB) and data loss prevention (DLP) capabilities.
Story image
Sisense
Data and analytics could be key to higher selling prices in APAC
Sisense's latest report has found that almost half of data professionals in APAC think customised data and analytics can create better selling prices for their products.
Story image
Sustainability
Legrand unveils Nexpand, a data center cabinet platform
Legrand has unveiled a new data center cabinet platform, Nexpand, to offer the necessary scalability and future-proof architecture for digital transformation.
Story image
Partnerships
Thailand announces launch of the Thailand 5G Alliance
It will promote collaboration between the public and private sector, through companies such as Huawei, to commercially drive Thailand's 5G development.
Story image
Cloud
Cloudflare outage in 19 data centers worldwide due to own error
Cloudflare says its outage for 19 of its data centers yesterday was because of a change in a long-running project to increase resilience in its busiest locations.