Australia Data Storage Market Forecast Trends - Market Size, Share, Growth Analysis Report (2025-2034)

Key Market Trends and Insights:

• Australia Capital Territory is the fastest growing region demonstrating 5.5% CAGR over the forecast period.  
• By type, cloud Storage is set to grow at a CAGR of 5.7% over the forecast period, attributed to the rising need for scalable data management solutions.
• By end-user, IT and Telecommunications is projected to witness a CAGR of 5.9% throughout the forecast period.

Market Size & Forecast:

• Market Size in 2024: AUD 4.65 billion 
• Projected Market Size in 2034: AUD 7.50 billion 
• CAGR from 2025-2034: 4.90% 
• Fastest-Growing Regional Market: Australian Capital Territory

Generative AI applications, such as ChatGPT, demand far greater processing power and storage than traditional systems, making conventional data centres insufficient. GPU-intensive servers consume significantly more energy and generate higher heat, creating a pressing need for purpose-built, energy-efficient, and AI-ready data storage facilities.

Australia is emerging as a key hub for these next-generation facilities, particularly in Western Australia and the Northern Territory owing to the presence of hyperscale data centers, such as the GreenSquareDC’s WAi1 in Perth. The facility is powered by renewable energy, built with sustainable materials, and incorporates water-efficient systems and low-carbon technologies. Large-scale renewable energy projects, including the 50 GW Western Green Energy Hub in Western Australia and the 300 MW Larrakia solar farm in the Northern Territory, provide reliable green power, enabling operators to secure substantial power purchase agreements for hyperscale operations.

As per market reports published by the Australian Government in March 2024, Australia’s strategic location and subsea cable infrastructure further strengthen the Australia data storage market. The country has 17 subsea cable connections to Asia and global markets, with Western Australia providing backup connectivity to the east coast.

Rising data volumes driven by AI, IoT, and cloud adoption are prompting organizations to prioritize sustainable, energy-efficient, and secure storage platforms. Holon’s Hamilton facility, launched in June 2023, exemplifies this trend, using 100% renewable energy and blockchain-based Filecoin technology to provide 27 Petabytes of verifiable storage. Its pre-sold capacity underscores strong market demand for green, next-generation solutions.

Government initiatives and investments in renewable energy and infrastructure continue to support market growth. For instance, the Australian government mandated all data centres, public or private to achieve a five-star NABERS rating by July 2025 as part of its Net Zero in Government Operations strategy. This regulation aims to improve energy efficiency, reduce carbon emissions, and promote sustainable operations across the Australia data storage market. Such developments and government policies are propelling industry growth.

Key Trends and Recent Developments

March 2025

Partners Group announced plans to acquire GreenSquare Data Centers in Australia, investing up to AUD 1.2 billion to build a next-generation, sustainable data center platform. GreenSquareDC will operate large-scale data centers in Sydney, Melbourne, and Perth, serving global hyperscale and cloud customers under long-term contracts. Strategic sites and advanced energy-efficient technologies will support scalable growth and high-performance computing.

May 2025

Blue Owl Capital’s Stack Infrastructure announced its plans to take up an AUD 1.3 billion (USD 833 million) loan to expand its data centre operations in Australia, including its Canberra and Melbourne campuses. The funding will support additional high-performance, energy-efficient, and AI-ready facilities. This move reflects strong growth opportunities in the Australia data storage market, driven by rising demand for cloud, AI, and secure enterprise storage solutions.

July 2025

Australian technology firm Macquarie Technology Group plans to purchase land in Sydney to develop a new 150 MW data centre campus for hyperscale, AI, cloud, and government workloads. The AU$240 million acquisition will be funded through cash reserves and corporate debt, with development expected over the next few years pending approvals.

April 2024

Autodesk launched a regional data storage location in Australia for its Construction Cloud (ACC) products, offering local storage with reduced latency. These addressed the growing business and regulatory needs for data regionalization, ensuring secure, high-performance access. The move strengthens Autodesk’s support for the Australia data storage market and helps customers optimize collaboration and operational efficiency locally.

Rising demand from hyperscalers and AI adoption

The surge in demand from hyperscalers and rapid adoption of AI technologies is a key driver of the Australia data storage market. These trends are accelerating investment in high-performance, scalable, and energy-efficient data centre infrastructure across the country. According to CBRE’s Australia’s Data Centres 2024 report, the investable universe for Australian data centres currently stands at AU$23 billion and is projected to nearly double to AU$40 billion by 2028, supported by a strong pipeline of committed projects and rising enterprise requirements. This growth highlights Australia’s increasing prominence as a strategic hub for next-generation storage solutions.

AI-driven applications fueling storage demand

The growing adoption of artificial intelligence is reshaping Australia’s data storage market, as enterprises deploy AI for automation, predictive analytics, and customer experience enhancement. These applications generate vast volumes of unstructured data, requiring high-performance, scalable, and low-latency storage infrastructure. To meet this demand, Amazon announced in June 2025 an AU$20 billion investment to expand its Australian data centers through 2029. This large-scale commitment highlights how the surge in AI-driven workloads is pushing providers to build advanced infrastructure capable of supporting the nation’s evolving digital ecosystem.

Media, gaming, and streaming content growth driving storage needs

Australia’s booming digital entertainment sector is fueling demand for scalable, high-capacity storage solutions. Video streaming platforms, esports, and cloud gaming require low-latency infrastructure to deliver seamless experiences and handle massive data flows. Online gaming alone has surged, with Ipsos iris reporting that nearly 17 million Australians played online games in June 2025, marking a 3.9 percent year-on-year increase. This rapid growth in real-time, content-heavy applications underscores the need for advanced storage architectures capable of supporting ultra-fast access, high-definition content delivery, and immersive digital engagement across the country.

Strategic investments for infrastructure expansion

Strategic investments and infrastructure expansion are accelerating the growth of Australia’s data storage market, ensuring the capacity needed for cloud adoption, AI workloads, and digital transformation. Both international tech providers and domestic enterprises are prioritizing large-scale, energy-efficient facilities to meet rising digital demand. In 2025, Stockland announced a partnership with EdgeConneX, a global data center leader, to jointly develop advanced facilities across the country. This collaboration reflects how strategic alliances are strengthening Australia’s digital backbone and positioning the nation as a key hub for next-generation storage infrastructure.

Government’s data and digital strategy strengthening data sovereignty

The Australian Government’s Data and Digital Strategy, launched in December 2023, has become a key driver of the nation’s data storage and management landscape. The strategy emphasizes data sovereignty, mandating secure, transparent, and trusted practices to protect citizens’ information while enhancing digital capabilities across public services. By reinforcing the importance of storing and managing data within national borders, the policy is fostering greater trust among businesses and consumers. This government-led approach is accelerating the adoption of local data infrastructure to meet rising compliance and security demands.

Australia Data Storage Market Share

By Type, cloud storage is picking up pace

Cloud storage is gaining robust momentum in the Australia data storage market, as enterprises increasingly prioritize scalability and flexibility to handle massive data volumes. In recent years, businesses across banking, healthcare, and retail have accelerated cloud adoption to support AI-driven analytics, remote collaboration, and digital-first operations. For example, in November 2023, Wasabi Technologies partnered with ANZ based Channel Ten and Visium Networks to deliver cost-efficient, high-speed cloud storage for video surveillance. With applications spanning disaster response, healthcare, banking, and smart cities, cloud storage is proving essential for managing data-intensive and mission-critical workloads. These initiatives highlight cloud storage as the backbone of enterprise modernization and resilient data management.

Software-defined storage (SDS) is witnessing notable growth, fueled by its ability to provide cost-efficient, agile, and vendor-neutral storage management. Between 2023 and 2025, Australian enterprises increasingly adopted SDS to unify storage across cloud and on-premises environments. In 2024, NEXTDC partnered with VMware to offer SDS-enabled hybrid storage, while many startups leveraged SDS for containerized applications and AI workloads. Its flexibility to scale on demand and integrate with evolving technologies makes SDS highly attractive for organizations looking to reduce costs and streamline operations while maintaining performance.

By end-user, IT and telecommunications set to amass the highest revenue

The IT and telecommunications sector is set to record substantial growth in the Australia data storage market driven by the need for advanced cloud-native monitoring, security, and scalable infrastructure to handle rising digital workloads. With rapid adoption of 5G, AI, and SaaS platforms, enterprises require resilient storage systems and real-time visibility to ensure seamless performance. Datadog’s announcement in April 2025, to establish its first Australian data centre on AWS reflects this shift, offering localized storage and processing to ensure compliance while enabling telecoms and IT providers with observability, performance, and data sovereignty.

Meanwhile, the BFSI segment in the Australia data storage market is being propelled by rapid digital transformation and the adoption of cloud-native platforms that prioritize agility, compliance, and customer-centric services. A notable example is the partnership between Uniting Financial Services and Infosys Finacle, announced in August 2025. The partnership aimed to deploy its next-gen Digital Banking Suite on AWS cloud. Completed in less than five months, the migration modernized UFS’s core banking operations and digital capabilities. By enabling omnichannel engagement, faster product innovation, and secure, scalable infrastructure, this initiative highlights how financial institutions are driving data storage demand across Australia.

Australia Data Storage Market Regional Analysis

By region, New South Wales records notable growth

New South Wales demonstrates significant growth in the Australia data storage market, propelled by government initiatives fostering rapid digital infrastructure growth. The Minns Government’s launch of the Investment Delivery Authority, supported by AUD 17.7 million in the 2025–26 Budget, is a decisive step toward streamlining approvals and attracting large-scale technology investments. Modeled on the Housing Delivery Authority, this body reduces regulatory complexity and accelerates delivery across advanced technology and energy sectors. By reinforcing Sydney’s position as a premier hub for digital innovation, the initiative fuels strong momentum in storage demand and capacity expansion.

Besides this, Western Australia is rapidly emerging as a significant market destination for data storage companies, propelled by rising demand for AI-ready and defense-aligned digital infrastructure. CDC’s plan to invest AUD 415 million in a new Perth campus, delivering up to 200MW of high-density capacity by 2026, underscores this trend. Positioned within the AUKUS security framework, the facility will support advanced technologies, national security operations, and hyperscale AI workloads. With innovations such as zero-water cooling systems and strong global subsea cable connectivity, Western Australia is positioning itself as a sustainable and strategically vital data hub.

Competitive Landscape

Leading data storage companies in Australia are focusing on expanding hyperscale and AI-ready facilities to meet the surging demand for high-performance storage. Many Australia data storage market players are investing in renewable energy-powered data centres, adopting energy-efficient cooling systems, and developing hybrid storage solutions that combine on-premises and cloud capabilities. Strategic partnerships, acquisitions, and collaborations with technology providers are enabling faster deployment of scalable infrastructure, enhancing service reliability, and addressing enterprise requirements for secure, verifiable, and ESG-compliant storage solutions.

Meanwhile, many companies are also emphasizing innovation in software-defined storage, network optimization, and data management platforms. Investments in blockchain-based storage solutions and secure cloud platforms are enabling companies to offer verifiable, high-capacity, and compliant storage for BFSI, government, IT, and media sectors. Several major Australia data storage market players are leveraging regional advantages, such as subsea connectivity and renewable energy projects in Western Australia and the Northern Territory, to expand capacity and service both domestic and Asia-Pacific markets efficiently.

Hewlett Packard Enterprise Development LP

Hewlett Packard Enterprise Development LP is headquartered in San Jose, California. It was established in 2015 as a spin-off from HP. The company provides enterprise IT solutions, including servers, storage, and networking products. HPE focuses on helping businesses optimize their IT infrastructure.

Dell Inc.

Dell Inc. was founded in 1984 in Round Rock, Texas. It is a leading provider of personal computers, servers, and IT solutions worldwide. Dell serves both consumer and enterprise markets with innovative technology. The company emphasizes reliability and customer-focused services.

International Business Machines Corporation (IBM)

IBM is headquartered in Armonk, New York, and was founded in 1911. It specializes in cloud computing, artificial intelligence, and enterprise hardware solutions. IBM has a long history of technological innovation and global operations. The company supports businesses in digital transformation initiatives.

Pure Storage, Inc.

Pure Storage, Inc. was founded in 2009 and is based in Mountain View, California. It offers high-performance all-flash storage solutions for enterprises. The company focuses on simplicity, speed, and data efficiency. Pure Storage serves customers across multiple industries worldwide.

Other prominent data storage companies in Australia include Dropbox, Inc., Seagate Technology Holdings PLC, Lenovo Group Ltd., Google LLC, Amazon Web Services, Inc., and Hitachi, Ltd., among others.

Key Highlights of the Australia Data Storage Market Report:

• The report provides a comprehensive review of the historical performance of the Australian data storage industry and delivers accurate forecasts through (YEAR) , enabling businesses to understand long-term market dynamics and future opportunities.
• It offers detailed insights into product innovations, covering the shift toward AI-ready, sustainable, and cloud-native storage solutions, which are reshaping enterprise infrastructure and driving efficiency across multiple sectors.
• The study includes an in-depth competitive landscape analysis, profiling both leading domestic players and major international data storage providers, and highlighting their strategies, technological advancements, and expansion initiatives.
• Regional analysis identifies New South Wales as the dominant hub, while also emphasizing the emergence of Western Australia and the Northern Territory as fast-growing destinations for hyperscale and green data storage facilities.
• The report provides an investment-focused outlook supported by government policies, renewable energy projects, and large-scale hyperscale commitments, ensuring that stakeholders can align their strategies with Australia’s evolving digital infrastructure landscape.

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• Insights are backed by a combination of extensive primary and secondary research, ensuring data accuracy and reliability for decision-makers.
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• Detailed region-wise and product-specific analysis equips businesses with the tools to identify emerging growth areas and tailor their strategies for maximum impact.

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