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

Market Overview

The Australia data centre power market is expanding faster than the grid that feeds it. AI training halls, hyperscale cloud regions and colocation campuses are pushing rack power densities up, and every added megawatt of load needs matching UPS, generator, switchgear and battery capacity inside the fence line.

Three forces shape the market: grid access, since AEMO tracks 225 potential projects but reports that more than 40% have dropped out or moved backward; policy, with federal expectations asking developers to underwrite new renewable supply; and technology, as lithium-ion storage and modular power rooms replace lead-acid and diesel-only designs.

In March 2026 the Australian Government released national data centre expectations. In July 2026 AEMO reported 9 GW of data centres in the transmission connection process, and in August 2026 its electricity statement projected a seven-fold rise in data centre consumption over the decade.

Key Market Trends and Insights

• Connection queue scale: AEMO reported in July 2026 that 17 data centres with 9 GW of maximum connection capacity were in the transmission connection process, with 7.6 GW still at application stage.
• Demand outlook: AEMO's August 2026 forecast sees data centre electricity use rising from about 5 TWh to about 34 TWh over the decade, built on 225 potential projects.
• Pipeline versus delivery: CommBank's August 2026 analysis counted about 6 GW of proposed capacity, roughly four times operating capacity at the end of 2025, with only 3 of 162 sites above 100 MW.
• Campus-scale power rooms: Zerra DC's August 2026 Queensland application describes a 1.44 GW campus with its own 275 kV and 330 kV switching stations, showing the electrical plant one site now needs.

Australia Data Centre Power Market Size and Forecast

The market is moving from backup-only power towards active, grid-interactive systems. Switchgear and power distribution lead in value because every megawatt of load needs transformers, switchboards and busways, while batteries and energy storage advance fastest as lithium-ion systems replace lead-acid UPS blocks. Colocation remains the largest buyer, but hyperscale and AI campuses grow quickest, and facilities above 100 MW outpace smaller halls. New South Wales remains the largest region and Queensland grows quickest as large campuses move north. Federal expectations and connection delays favour suppliers offering modular, pre-tested power rooms and local service support.

Key Takeaways: Australia Data Centre Power Market

Grid Queue Anchors a Decade of Equipment Demand

Revenue is on course to more than triple, from USD 1,180.00 million in 2025 to USD 3,664.90 million in 2035 at a 12.0% CAGR. AEMO's July 2026 count of 9 GW in the connection process shows how much electrical plant waits behind each approval, even though many projects will slip.

Storage and AI Campuses Lead Growth

Switchgear and Power Distribution holds the largest share, but Batteries and Energy Storage grows at an estimated 16.2% CAGR and Hyperscale and AI Campuses at an estimated 14.4% CAGR through 2035. Facilities above 100 MW rise at an estimated 15.3%, as Zerra DC's August 2026 application shows.

Policy and Delivery Risk Shape Supplier Strategy

Federal expectations ask new data centres to underwrite renewable supply, pay their share of network costs and offer demand flexibility, which favours battery-backed designs. Delivery risk is real, because AEMO reports that more than 40% of projects have dropped out or moved backward since 2025.

• Federal expectations released in March 2026 cover energy, water and workforce
• Mature sites use only about half of their network connection capacity
• New facilities may take 5 to 10 years to reach full load

Australia Data Centre Power Market Report Summary

Key Insight

Equipment demand follows grid connections, and storage-led, high-density designs are replacing backup-only systems. New South Wales leads, while Queensland grows fastest as large campuses spread.

Key Trends in the Australia Data Centre Power Market

The Australia data centre power market is being reshaped by connection queues, federal policy expectations, state fast-tracks and rising grid-operator demand forecasts.

August 2026 - AEMO Forecasts Seven-Fold Rise in Data Centre Power Use

• AEMO's 2026 electricity statement, reported by iTnews on 25 August 2026, projects consumption rising from about 5 TWh to about 34 TWh over the decade.
• The forecast rests on 225 potential projects, although more than 40% have dropped out or moved backward since 2025.
• Mature sites use about half of their connection capacity, so equipment is sized for slowly arriving peaks.

July 2026 - AEMO Reports 9 GW of Data Centres in Transmission Connection Process

• AEMO's June quarter 2026 report found 17 data centres with 9 GW of maximum connection capacity, 12 at application stage and 5 in implementation.
• New South Wales holds over half of the new capacity and Victoria about a third.
• Average demand doubled to 204 MW in Victoria and rose 35% to 435 MW in New South Wales.

March 2026 - Federal Government Releases National Data Centre Expectations

• The Australian Government set five expectations in March 2026 covering national interest, energy, water, workforce and innovation.
• New facilities are expected to underwrite additional renewable generation, cover their share of network costs and take part in demand flexibility.
• The framework is guidance, yet aligned projects are expected to move faster through Commonwealth processes.

February 2026 - Victoria Approves NEXTDC's 162 MW Port Melbourne Campus

• iTWire reported on 23 February 2026 that the Victorian Government approved NEXTDC's M4 campus at 127 Todd Road, Port Melbourne.
• The roughly AUD 2 billion project is designed for high-density, liquid-cooled AI systems.
• Attention now turns to power allocation and customer pre-commitments, when UPS and switchgear orders are placed.

Key Insight

Forecast growth in grid demand, long connection queues and national expectations on renewable supply and demand flexibility are steering buyers towards storage-backed, modular power systems and phased energisation.

Recent Market Developments in the Australia Data Centre Power Market

Recent developments, presented from the most recent, show multi-gigawatt campus plans, operator expansion approvals, hyperscale investment and new Western Australian capacity.

August 2026 - Zerra DC Lodges 1.44 GW Western Downs Campus Application in Queensland

• W.Media reported on 24 August 2026 that Singapore-based Zerra DC applied for four 360 MW buildings on a 725.5-hectare site near Dalby.
• The campus would have customer-owned 275 kV and 330 kV switching stations, with estimated construction cost of AUD 14.5 billion.
• The site lies near the Braemar transmission substation, and approval from Western Downs Regional Council is pending.

July 2026 - NEXTDC's Eastern Creek S7 Planning Documents Show 612 MW

• DatacenterDynamics reported in July 2026 that planning documents for NEXTDC's Sydney site list 612 MW, up from 550 MW previously described.
• The plan includes a substation and nine data centre buildings across three blocks, with an environmental impact statement in preparation.
• OpenAI and NEXTDC signed a memorandum of understanding on the site in December 2025.

December 2025 - AirTrunk Announces MEL2 With Over 354 MW and AUD 5 Billion Investment

• AirTrunk announced in December 2025 a second Melbourne campus at Tullamarine with more than 354 MW and over AUD 5 billion of new investment.
• Melbourne deployable capacity will exceed 630 MW, and the build is expected to support more than 4,000 construction jobs.
• Multi-phase construction spreads equipment orders over several years and favours suppliers with local stock.

August 2025 - CDC Data Centres Plans 200 MW Campus at Maddington, Western Australia

• W.Media reported in August 2025 that CDC planned its first Western Australian campus, about 20 km south-east of Perth, with up to 200 MW.
• The first stage is valued at AUD 415 million, with operation expected in 2026.
• Closed-loop liquid cooling needs no primary water, which shifts electrical load towards chillers and pumps.

Key Insight

Multi-gigawatt campus plans, large operator expansions and a first major Western Australian site signal power rooms that suppliers must stage, deliver and service over many years.

Australia Data Centre Power Industry Segmentation

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

Market Breakup by Equipment Type

• UPS Systems
• Generators and Gensets
• Switchgear and Power Distribution
• Batteries and Energy Storage
• Others

Switchgear and Power Distribution leads on value, in our estimate, because every megawatt of load needs switchboards, transformers, busways and distribution units, and Zerra DC's August 2026 Queensland plan includes its own 275 kV and 330 kV switching stations. UPS Systems follow, with Vertiv backing its Australian and New Zealand channel partners in July 2026. Generators and Gensets hold steady on resilience needs, with Rehlko noting in August 2026 that AI loads strain generators and alternators. Batteries and Energy Storage grow fastest at an estimated 16.2% CAGR through 2035, as federal expectations of March 2026 ask for demand flexibility.

Market Breakup by Data Centre Type

• Hyperscale and AI Campuses
• Colocation
• Enterprise
• Edge
• Others

Colocation leads on value, in our estimate, with NEXTDC's 162 MW Port Melbourne approval of February 2026 and CDC's 200 MW Maddington plan of August 2025 showing operator scale. Hyperscale and AI Campuses grow fastest at an estimated 14.4% CAGR through 2035, as AirTrunk's December 2025 MEL2 announcement of more than 354 MW and Goodman's 90 MW Sydney build reported in February 2026 show. Enterprise facilities grow slowly as workloads move to the cloud. Edge sites expand in regional and telecommunications settings, buying compact UPS and battery cabinets.

Market Breakup by Facility Capacity

• Below 10 MW
• 10 MW to 50 MW
• 50 MW to 100 MW
• Above 100 MW
• Others

Facilities from 10 MW to 50 MW lead on value, in our estimate, because most of the 162 operating sites counted by CommBank in August 2026 are far smaller than the headline campuses. Below 10 MW covers enterprise, edge and regional rooms. Facilities from 50 MW to 100 MW grow quickly as in-fill sites in Sydney and Melbourne are densified. Above 100 MW grows fastest at an estimated 15.3% CAGR through 2035, since only 3 of those 162 sites exceed that size today and Zerra DC's 1.44 GW application of August 2026 points to many more.

Market Breakup by Region

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

New South Wales dominates, in our estimate, with over half of the new connection capacity in AEMO's July 2026 report, and it grows at an estimated 11.0% CAGR through 2035 from a large base. Victoria grows at 12.5%, helped by its February 2026 approval of NEXTDC's Port Melbourne campus. Queensland is the fastest-growing region at an estimated 14.8%, on the Western Downs proposal of August 2026. Western Australia grows at 13.9% as CDC's Maddington campus is built. Others, covering South Australia, the Australian Capital Territory, Tasmania and the Northern Territory, grow at 12.7%; they are grouped because each is small.

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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 Centre Power Market

Competition combines global electrical majors, generator makers and local integrators selling through contractors and operators. Entry barriers include factory test capacity, local service coverage, lead times on switchgear and generators, and operator approved-vendor lists.

Vertiv

Vertiv, headquartered in Westerville, Ohio, supplies UPS systems, power distribution, switchgear, busways and thermal products for data centres. In March 2026 it joined SUSE in warning that electricity use is becoming a binding constraint for Australian operators. On 28 July 2026 ChannelLife reported that Vertiv was backing its Australian and New Zealand channel partners as AI-ready power and cooling demand grew.

Rehlko

Rehlko, the company formerly known as Kohler Energy, based in Wisconsin, makes generators, alternators, battery energy storage, on-site gas generation and modular e-POD power infrastructure for data centres. In August 2026 it said it operates from 80 locations and has deployed more than 14 GW of capacity. Its AI-readiness eBook argues that variable AI loads strain generators and UPS designs.

Eaton

Eaton, headquartered in Dublin, Ireland, supplies UPS systems, switchgear, busways, power distribution units and circuit protection for data centres. On 17 August 2026 IT Brief Australia reported that Eaton and Trane had unveiled a joint AI data centre reference design intended to lower installation costs and reduce copper use. Pre-engineered power and cooling blocks suit Australian campuses where connection delays compress schedules.

Schneider Electric

Schneider Electric, headquartered in Rueil-Malmaison, France, sells APC and Galaxy UPS systems, switchgear, busways and EcoStruxure software for data centres. In May 2025 IT Brief Australia described it as a leader in liquid cooling for AI data centres. Its APC channel partners and large power-distribution projects give it exposure to both colocation and enterprise upgrades.

Other players operating in the Australia data centre power market include ABB, Siemens, Cummins, Caterpillar, and Legrand, alongside local switchboard makers, generator dealers, battery integrators, electrical contractors and service providers supplying UPS, switchgear, generators and storage to hyperscale, colocation, enterprise and edge facilities across Australia.

Key Insight

Competition rests on local service coverage, factory lead times, operator approvals and tested modular power rooms delivered to tight schedules rather than on equipment price alone.