Australia Data Center Storage Market Size, Share and Outlook - Growth Analysis Report and Forecast Trends (2026-2035)

Market Overview

The Australia data center storage market is moving from a refresh-led business to a capacity-led one, as new campuses open in Sydney, Melbourne, Perth and Canberra. Flash arrays still anchor core workloads, while object and software-defined platforms absorb unstructured and AI data.

Three forces shape the outlook: record contracted capacity at colocation operators, federal expectations that data centres support the energy transition and local capability, and vendor shifts towards AI-ready, cyber-resilient storage with consumption pricing.

In February 2026, NEXTDC reported 416.6MW of contracted utilisation. In March 2026, the federal government set five expectations for data centres, and in August 2026 NEXTDC lifted contracted capacity to 740.1MW on a pro forma basis.

Key Market Trends and Insights

• Contracted capacity surge: NEXTDC reported in August 2026 that pro forma contracted utilisation reached 740.1MW, up 202%, with a forward order book of 565.1MW awaiting billing.
• Grid connection scale: In August 2026, coverage of the Australian Energy Market Operator electricity statement noted about 2.2GW of data centre connection capacity in the first quarter of 2026.
• Vendor momentum: On 13 August 2026, Hitachi Vantara said its Asia-Pacific product revenue rose 52% and storage revenue rose 45%, led by its VSP One portfolio.
• Melbourne build-out: In January 2026, AirTrunk unveiled a second Melbourne campus of over 354MW, with investment above AUD 5 billion and operations due in the second half of 2027.

Australia Data Center Storage Market Size and Forecast

Growth is shifting from replacement of ageing arrays to capacity added for artificial intelligence, sovereign cloud and backup. Block storage remains the largest family, while object storage advances fastest as unstructured and training data expand. All-flash arrays hold the lead in technology, and software-defined platforms gain share as operators seek hardware choice. Hyperscale and cloud operators grow quickest, with colocation providers close behind. New South Wales stays the largest region, and Victoria grows fastest as new campuses come online. Energy, water and cyber-resilience requirements shape procurement choices across the outlook.

Key Takeaways: Australia Data Center Storage Market

Capacity Build-Out Drives Storage Demand

Revenue is on course to expand by about 179% across the decade, from AUD 2.40 billion in 2025 to AUD 6.69 billion in 2035 at a 10.8% CAGR. Contracted colocation capacity, AI workloads and refresh cycles make demand durable.

Object and Hyperscale Lead Growth

Object storage grows at an estimated 14.2% CAGR and hyperscale and cloud operators at an estimated 13.6% CAGR through 2035. Software-defined platforms advance at 12.7% as operators prize hardware choice and scale-out design.

Policy and Power Shape Procurement

Federal expectations and grid limits push buyers to weigh energy use, sovereignty and resilience alongside price. Vendors with dense flash, low power draw and strong ransomware recovery gain an edge.

• Five federal expectations for data centres set in March 2026
• About 2.2GW of connected capacity in the first quarter of 2026
• Data centre demand about 5TWh in the latest year, per AEMO coverage

Australia Data Center Storage Market Report Summary

Key Insight

Capacity build-out, artificial intelligence workloads and refresh cycles support rapid value growth. Block and flash lead today, while object and software-defined platforms gain ground as unstructured data expands.

Key Trends in the Australia Data Center Storage Market

The Australia data center storage market is being reshaped by record colocation contracting, federal expectations for data centres and AI-focused platform launches from storage vendors.

August 2026 - NEXTDC Records Its Largest Contracting Year

• NEXTDC reported on 27 August 2026 pro forma contracted utilisation of 740.1MW, up 495.3MW, against built capacity of 287.9MW at 30 June 2026.
• Its forward order book stood at 565.1MW, and it guided to capital expenditure of AUD 5,250 million to AUD 5,750 million for the next financial year.
• Added capacity during the year included 42MW at M3 Melbourne and 16MW at S3 Sydney.

August 2026 - AEMO Statement Highlights Data Centre Load

• Coverage on 25 August 2026 of the Australian Energy Market Operator electricity statement put data centre use at about 5TWh in the latest year.
• AEMO projected about 34TWh in its Step Change scenario and about 52TWh in its high-growth scenario by the mid-2030s.
• Operating facilities had about 2.2GW of connection capacity in the first quarter of 2026, with actual demand near 27% of it. AEMO expects a mature fleet to average 45% to 51% utilisation.

March 2026 - Federal Government Sets Expectations for Data Centres

• A joint ministerial release on 23 March 2026 set five expectations for data centre and AI infrastructure developers.
• They cover the national interest, the energy transition, responsible water use, Australian skills and jobs, and local research and capability.
• Operators are expected to underwrite new renewable power and pay their full share of grid connection costs.

February 2026 - NEXTDC Lifts Contracted Capacity at Half-Year

• On 26 February 2026 NEXTDC reported contracted utilisation of 416.6MW, up 240.5MW over twelve months to 31 December 2025.
• Its forward order book was 296.8MW, and it invested AUD 1,285 million in capital expenditure over the half.
• It raised full-year capital expenditure guidance to AUD 2,400 million to AUD 2,700 million.

Key Insight

Contracted capacity and federal policy are reshaping demand. Operators must secure power and renewables, and storage buyers weigh density, efficiency and resilience as new halls fill with artificial intelligence workloads.

Recent Market Developments in the Australia Data Center Storage Market

Recent developments, presented from the most recent, show the Australia data center storage market moving through platform launches by storage vendors and new campus commitments by operators.

May 2026 - Dell Launches PowerStore Elite

• On 19 May 2026 Dell Technologies introduced PowerStore Elite at Dell Technologies World in Las Vegas, a refreshed platform for block, file, virtual machine and container workloads.
• Mixed-generation clustering lets existing customers adopt the latest hardware without disruption.
• Dell cited lower cost per terabyte, reduced energy use and stronger ransomware protection.

March 2026 - NetApp Sets Its AI Data Plan for Australia

• At INSIGHT Xtra Sydney in March 2026, NetApp presented its data vision for Australia and New Zealand.
• It showcased AFX disaggregated storage on ONTAP, the AI Data Engine and new EF-Series systems integrated with Lustre.
• NetApp also highlighted its role as data infrastructure partner to the National Football League, which is playing its first regular-season game in Melbourne in 2026.

February 2026 - Pure Storage Rebrands as Everpure

• Pure Storage became Everpure on 23 February 2026, with trading under the new name on the NYSE from 5 March 2026.
• The company announced its intent to acquire data intelligence specialist 1touch.
• Its ticker and leadership were unchanged, and Portworx became Portworx by Everpure.

January 2026 - AirTrunk Unveils a Second Melbourne Campus

• AirTrunk announced MEL2 in north-west Melbourne, with over 354MW and more than AUD 5 billion of direct investment.
• The campus lifts its deployable Melbourne capacity to over 630MW, with operations due in the second half of 2027.
• Construction is expected to support more than 4,000 jobs.

Key Insight

Vendors are launching denser, AI-ready and cyber-resilient platforms while operators commit to large new campuses. Buyers gain more choice, and competition moves towards efficiency, resilience and sovereign hosting.

Australia Data Center Storage Industry Segmentation

The Expert Market Research’s report on the Australia Data Center Storage Market offers a detailed analysis of the market based on the following segments.

Market Breakup by Storage Type

• Block Storage
• File Storage
• Object Storage
• Backup and Archive Storage
• Others

Block Storage leads revenue, with Dell launching PowerStore Elite for block and file workloads on 19 May 2026. File Storage serves analytics, engineering and AI training data, and NetApp showed its AFX platform on ONTAP in March 2026. Object Storage grows fastest at an estimated 14.2% CAGR, as HPE upgraded its Alletra MP X10000 object system in August 2025 and AI data lakes expand. Backup and Archive Storage follows ransomware recovery needs, with IBM's FlashSystem range generally available from 6 March 2026. Others covers tape libraries and specialist appliances.

Market Breakup by Technology

• All-Flash Arrays
• Hybrid Arrays
• Software-Defined Storage
• Hard Disk and Tape Systems
• Others

All-Flash Arrays lead, helped by Hitachi Vantara reporting 45% storage revenue growth on 13 August 2026 and VSP One demand. Hybrid Arrays keep a place in cost-sensitive enterprise and regional estates. Software-Defined Storage grows fastest at an estimated 12.7% CAGR, as Nutanix and Pure Storage launched an integrated virtualisation stack in December 2025. Hard Disk and Tape Systems hold long-term archives, though volumes shift towards flash and object tiers as sovereign AI data and backup targets expand.

Market Breakup by Data Center Type

• Hyperscale and Cloud Providers
• Colocation Providers
• Enterprise and Government
• Edge and Others
• Others

Hyperscale and Cloud Providers grow fastest at an estimated 13.6% CAGR, with AirTrunk planning over 354MW at MEL2 from January 2026. Colocation Providers follow, with NEXTDC reporting 740.1MW of pro forma contracted utilisation in August 2026. Enterprise and Government holds the largest installed estate and buys storage through refresh cycles and sovereignty needs, including Macquarie Data Centres' planned 47MW IC3 Super West hosting Dell's AI Factory. Edge and Others covers regional sites, telco facilities and small server rooms.

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Western Australia
• South Australia
• Others

New South Wales dominates through Sydney's concentration of hyperscale and colocation halls, growing at an estimated 10.4% CAGR through 2035. Victoria is the fastest-growing region at an estimated 12.2%, with AirTrunk's MEL2 and CDC's Brooklyn campus opened in March 2026. Queensland grows at 10.9%. Western Australia follows at 11.8%, as CDC planned a campus of up to 200MW at Maddington. South Australia grows at 10.2%. Others covers Tasmania, the Australian Capital Territory and the Northern Territory at 10.6%.

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If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Competitive Landscape in the Australia Data Center Storage Market

Competition spans global storage vendors, hyperscale and colocation operators that set procurement standards, and local integrators. Barriers include product breadth, channel reach, ransomware recovery features and the ability to support sovereign and energy-efficient deployments.

NEXTDC

NEXTDC is an ASX-listed data centre operator with its corporate office in Sydney and facilities across Sydney, Melbourne, Brisbane, Perth and Canberra. It reported pro forma contracted utilisation of 740.1MW and a forward order book of 565.1MW on 27 August 2026. In February 2026 it lifted full-year capital expenditure guidance to AUD 2,400 million to AUD 2,700 million. Its customers include hyperscalers, enterprises and government agencies that buy interconnected space and power for storage-heavy workloads.

AirTrunk

AirTrunk, headquartered in Sydney, develops hyperscale data centre campuses across Australia and Asia-Pacific for cloud and AI customers. In January 2026 it announced MEL2 in north-west Melbourne, with over 354MW and more than AUD 5 billion of direct investment, due to open in the second half of 2027. The campus lifts its Melbourne capacity to over 630MW.

Dell Technologies

Dell Technologies, headquartered in Round Rock, Texas, sells PowerStore, PowerMax and PowerScale storage through a broad Australian partner network. On 19 May 2026 it launched PowerStore Elite with mixed-generation clustering and lower energy use. In August 2025 it partnered with Macquarie Data Centres to host its AI Factory with NVIDIA in the planned 47MW IC3 Super West facility.

NetApp

NetApp, headquartered in San Jose, California, supplies ONTAP-based all-flash, hybrid and cloud storage through a long-established Australian presence. At INSIGHT Xtra Sydney in March 2026 it presented AFX disaggregated storage, the AI Data Engine and EF-Series systems for GPU workloads. It marked 25 years in Australia and New Zealand in November 2025. Its ransomware resilience tooling covers ONTAP workloads from detection through recovery.

Other players operating in the Australia data center storage market include Everpure, Hewlett Packard Enterprise, Hitachi Vantara, IBM, and CDC Data Centres, alongside system integrators, managed service providers and cloud operators supplying storage capacity and services across Australia.

Key Insight

Competition rests on platform breadth, cyber-resilience features, energy efficiency and channel reach. Global vendors compete for enterprise refresh while operators shape purchasing standards through large campus commitments.