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

Market Overview

The Australia data centre rack market is expanding because the country is building capacity faster than any other part of its digital infrastructure. Racks are bought hall by hall, so approvals, grid connections and customer contracts turn into orders within quarters, while rising power density changes what a rack must carry.

Three forces shape demand: a pipeline of about 6 GW, roughly four times the capacity operating at the end of 2025, according to CommBank in August 2026; power density, since air cooling handled 3 to 10 kW per rack while liquid-cooled racks now exceed 100 kW; and federal policy, which asks developers to fund renewable supply.

In March 2026 the Australian Government published its expectations of data centres and AI infrastructure developers. In August 2026 the Australian Energy Market Operator forecast consumption rising from about 5 TWh to about 34 TWh by 2035-36.

Key Market Trends and Insights

• Pipeline scale: CommBank estimated in August 2026 that proposed capacity reaches about 6 GW, around half in New South Wales and a quarter in Victoria, which keeps rack orders anchored to two states.
• Contracted demand: NEXTDC reported in August 2026 contracted utilisation of 740.1 MW against 287.9 MW built, so installed racks must roughly double before the contracts are fully served.
• Density shift: Schneider Electric's rear door heat exchangers handle up to 75 kW per rack, and Vertiv noted in July 2026 that racks now exceed 100 kW, so liquid-ready designs lift revenue per rack.
• Policy conditions: The government's expectations of 23 March 2026 ask operators to fund renewables and pay their share of grid connections, which may filter weaker projects but favour efficient racks.

Australia Data Centre Rack Market Size and Forecast

The market is moving from air-cooled server cabinets in enterprise rooms towards high-density, liquid-ready racks in large colocation and hyperscale halls. Server racks and cabinets lead in value because every hall is built around them, while rack power distribution units grow faster as metering and higher amperage become standard. Direct-to-chip liquid-ready racks advance quickest as artificial intelligence clusters replace conventional servers, and hyperscale and cloud facilities add share. New South Wales remains the largest region, and Victoria grows quickest as large Melbourne campuses reach delivery. Grid conditions, water use and local manufacturing capacity will decide how fast projects convert into orders.

Key Takeaways: Australia Data Centre Rack Market

Construction Pipeline Sustains Rack Demand

Revenue is on course to expand more than threefold, from AUD 270.00 million in 2025 to AUD 1,000.95 million in 2035 at a 14.0% CAGR. Operating capacity was about 2.2 GW in early 2026, while connection requests reached 66.9 GW in June 2026.

Liquid-Ready and Intelligent Power Lead Growth

Server Racks and Cabinets hold the largest share, but Direct-to-Chip Liquid-Ready Racks grow at an estimated 26.0% CAGR and Rack Power Distribution Units at an estimated 16.0% CAGR through 2035. Schneider Electric launched its Motivair liquid cooling range in its Pacific zone in November 2025.

Grid and Policy Rules Reshape Project Timing

AEMO expects data centres to take about 13% of grid consumption by 2035-36, and the federal expectations of March 2026 ask developers to underwrite new renewable supply.

• More than 40% of listed projects have dropped out or regressed in connection status since 2025
• Operators typically take 5 to 10 years to reach full capacity at a site
• Hyperscale and cloud operators grow fastest at an estimated 16.8% CAGR

Australia Data Centre Rack Market Report Summary

Key Insight

Demand is shifting towards dense, liquid-ready racks with intelligent power distribution as large halls replace enterprise rooms. New South Wales leads, while Victoria grows fastest.

Key Trends in the Australia Data Centre Rack Market

The Australia data centre rack market is being reshaped by grid forecasts, federal expectations, rising rack density and the arrival of vendor liquid cooling ranges.

August 2026 - AEMO Forecasts Data Centre Demand Rising to About 34 TWh by 2035-36

• The Australian Energy Market Operator said on 25 August 2026 that consumption would climb from about 5 TWh today to about 34 TWh in its Step Change scenario.
• Data centres would reach about 13% of grid operational demand, and current use is split about 66% New South Wales and 30% Victoria.
• That concentration keeps rack orders weighted to Sydney and Melbourne halls.

July 2026 - Vertiv Says Rack Densities Now Exceed 100 kW as Liquid Cooling Matures

• Vertiv said on 9 July 2026 that racks commonly exceed 100 kW, against 3 to 10 kW when air cooling was the norm.
• It expects liquid to carry about 70% to 80% of the load in hybrid designs, moving later towards fully liquid-cooled racks.
• Leak detection and isolation valves limit the racks affected by a fault, shaping manifold and fitting specifications.

March 2026 - Federal Government Publishes Expectations of Data Centres and AI Infrastructure Developers

• The expectations, released on 23 March 2026 under the National AI Plan, ask developers to help fund new renewable power.
• They also ask operators to pay their full share of new grid connections and to use water sustainably.
• Developers meeting these conditions are likely to favour efficient, higher-density racks.

November 2025 - Schneider Electric Launches Motivair Liquid Cooling Range in New Zealand for the Pacific Zone

• Schneider Electric said on 14 November 2025 that its Pacific zone had launched coolant distribution units from 105 kW to 2.5 MW.
• ChilledDoor rear door heat exchangers handle up to 75 kW per rack and suit any rack brand.
• Rack-agnostic doors give operators a retrofit path without replacing every cabinet.

Key Insight

Grid forecasts, federal expectations and rising rack density are the main structural forces, while connection delays and withdrawn projects remain the main risk to order timing.

Recent Market Developments in the Australia Data Centre Rack Market

Recent developments, presented from the most recent, show contracting records, new reference designs, large Melbourne campuses and a major Western Sydney approval.

August 2026 - NEXTDC Reports Contracted Utilisation of 740.1 MW at Record Annual Result

• NEXTDC reported on 27 August 2026 that built capacity was 287.9 MW at 30 June 2026, up 80.0 MW during the year.
• The forward order book reached 565.1 MW, and capital expenditure of A$5.25 billion to A$5.75 billion is guided for the coming year.
• Site M5 in Melbourne is planned for up to 1.2 GW, so rack demand is committed beyond current halls.

August 2026 - Trane Technologies and Eaton Unveil AI Data Centre Reference Design

• IT Brief Australia reported on 17 August 2026 that the design links thermal management and medium-voltage power for NVIDIA-based AI sites.
• The companies claim up to 15% better energy efficiency, up to 30% lower installation cost and up to 80% less copper.
• Integrated designs pull racks and power distribution into factory-built blocks.

January 2026 - AirTrunk Unveils Second Melbourne Campus MEL2 With More Than A$5 Billion Investment

• CRN Australia reported on 6 January 2026 that MEL2 will exceed 354 MW and open in the second half of 2027.
• AirTrunk's five campuses would total over 1.2 GW, taking its Melbourne capacity beyond 630 MW.
• A multi-phase build lets racks be ordered in tranches, which suits local suppliers.

December 2025 - New South Wales Approves CDC's A$3.1 Billion Marsden Park Campus

• Startup Daily reported on 4 December 2025 that the NSW Investment Delivery Authority approved the 504 MW hyperscale project after about 12 months of review.
• It will have six four-storey buildings at Marsden Park in Western Sydney, targeting 99% renewable energy by 2030.
• Six multi-storey buildings imply a very large rack requirement in New South Wales.

Key Insight

Record contracting, large Melbourne campuses and a Western Sydney approval show racks being ordered ahead of energisation, while integrated power and cooling designs push suppliers towards pre-configured systems.

Australia Data Centre Rack Industry Segmentation

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

Market Breakup by Product Type

• Server Racks and Cabinets
• Network Racks and Cabinets
• Open-Frame Racks
• Rack Power Distribution Units
• Others

Server Racks and Cabinets lead on value, in our estimate, because each new hall is built around enclosed cabinets; CDC's six-building Marsden Park campus, approved in late 2025, illustrates the scale. Rack Power Distribution Units grow fastest at an estimated 16.0% CAGR through 2035, as higher amperage and metering follow the density shift Vertiv described in July 2026. Network Racks and Cabinets track interconnection, such as NEXTDC's edge network builds in Geelong, the Sunshine Coast and Darwin reported in August 2026. Open-Frame Racks serve telecom rooms and test labs at slower growth.

Market Breakup by Cooling Method

• Air-Cooled Racks
• Rear-Door Heat Exchanger Racks
• Direct-to-Chip Liquid-Ready Racks
• Immersion-Ready Racks
• Others

Air-Cooled Racks lead in value today, in our estimate, because most enterprise and colocation halls still run conventional servers. Rear-Door Heat Exchanger Racks suit retrofits, with Schneider Electric's ChilledDoor handling up to 75 kW per rack as announced in November 2025. Direct-to-Chip Liquid-Ready Racks grow fastest at an estimated 26.0% CAGR through 2035, as Vertiv reported in July 2026 that racks commonly exceed 100 kW. Immersion-Ready Racks remain niche, used in research and specialist artificial intelligence deployments.

Market Breakup by Facility Type

• Colocation Data Centres
• Hyperscale and Cloud Data Centres
• Enterprise and Government Data Centres
• Edge and Telecom Sites
• Others

Colocation Data Centres lead, in our estimate, with NEXTDC reporting 287.9 MW built and 740.1 MW contracted at 30 June 2026. Hyperscale and Cloud Data Centres grow fastest at an estimated 16.8% CAGR through 2035, supported by AirTrunk's MEL2 campus announced in January 2026 and CDC's approval of December 2025. Enterprise and Government Data Centres lose share as workloads move to cloud, though sovereign requirements keep demand alive. Edge and Telecom Sites grow steadily, with Vertiv noting in July 2026 that edge sites and mining operations create demand.

Market Breakup by Region

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

New South Wales dominates, in our estimate, as AEMO said in August 2026 that it takes about 66% of current data centre consumption, and it grows at an estimated 13.4% CAGR through 2035 from a large base. Victoria is the fastest-growing region at an estimated 15.6%, with AirTrunk MEL2 and NEXTDC's M5 site planned for up to 1.2 GW. Western Australia grows at 14.6% and Queensland at 14.2%, from small bases outside the main grid, where AEMO placed Queensland at about 1% of consumption. Others, covering South Australia, Tasmania, the Australian Capital Territory and the Northern Territory, grow at 12.8%, with Darwin an edge site.

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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 Centres Rack Market

Competition combines global power and cooling groups, rack specialists with local fabrication, and server makers selling integrated racks. Entry barriers include liquid cooling know-how, local manufacturing, channel partners and relationships with colocation and hyperscale operators.

Schneider Electric

Schneider Electric, headquartered in Rueil-Malmaison, France, sells APC racks, cabinets, rack power distribution units and EcoStruxure monitoring, alongside Motivair liquid cooling. In November 2025 its Pacific zone launched in New Zealand coolant distribution units from 105 kW to 2.5 MW and ChilledDoor rear door heat exchangers up to 75 kW per rack. In December 2025 Motivair added two new coolant distribution units, the MCDU-45 and MCDU-55, for high-density artificial intelligence halls.

Vertiv

Vertiv, headquartered in Westerville, Ohio, supplies rack power distribution units, thermal systems, coolant distribution units and prefabricated modules to Australian data centres. In May 2025 it opened a redesigned national head office at Bella Vista in Sydney with Australia's first customer experience centre. In July 2026 its ANZ head said enterprise artificial intelligence was moving into deployment, with liquid cooling now a practical purchasing issue.

Legrand

Legrand, headquartered in Limoges, France, sells racks, cabinets and rack power distribution units in Australia through Legrand ANZ. In April 2025 it acquired Computer Room Solutions, a Mascot, Sydney business with Melbourne manufacturing, about 80 staff and almost A$50 million in annual sales. The business supplies server racks, cabinets, hot and cold aisle containment, caging and ceilings, giving Legrand local white space manufacturing.

Eaton

Eaton, headquartered in Dublin, Ireland, supplies rack power distribution units, uninterruptible power systems and power distribution for data centres worldwide, including Australia. In August 2026 it and Trane Technologies unveiled a reference design for NVIDIA-based artificial intelligence sites, claiming up to 15% better energy efficiency and up to 80% less copper. The design pairs medium-voltage power with white space thermal management for high-density halls.

Other players operating in the Australia data centres rack market include Rittal, Dell Technologies, Panduit, CommScope, and Hewlett Packard Enterprise, alongside regional enclosure fabricators, power distribution distributors, system integrators and data centre construction contractors supplying racks and accessories to colocation, hyperscale, enterprise and edge facilities across Australia.

Key Insight

Competition rests on liquid cooling capability, local manufacturing and lead times, and channel and operator relationships rather than price alone, while acquisitions are strengthening local supply.