Frost Radar in the Australian Data Center Market

Australia is one of the most mature data center services markets in the Asia-Pacific region. Despite facing intensifying competition from other countries in the region, including Singapore and Malaysia, the market continues to expand. Growth has been driven mostly by hyperscale cloud vendors, large enterprises, and highly regulated verticals (banking, financial services, and insurance is an example) that require strict data confidentiality and complete management control of their operations. Hyperscale public cloud service providers have been driving demand for data center services in Australia, particularly in the cities of Sydney and Melbourne. Many global public cloud providers (such as Amazon Web Services, Microsoft, and Google) have significantly increased their uptake of wholesale data center capacities in recent years. The increasing demand for hyperscale cloud services, the exponential increase in enterprise data, small and medium enterprises’ outsourcing of data center services, and government initiatives were undertaken to boost data center growth are among the primary drivers of data center services in Australia. The market also faces some restraints, such as a lack of trained manpower to handle complex data center processes, rising electricity prices, and a lack of a comprehensive understanding of power and cooling needs. Escalating costs in the Sydney Central Business District region, especially with regard to the average price of prime land, have resulted in Australia’s cloud providers and multinational corporations looking to base local operations in other cities. Perth is emerging as an attractive city in terms of international connectivity to global markets. A total of 7 companies were analyzed and evaluated for growth and innovation leadership. The Frost Radar reveals the market positioning of companies in an industry using their Growth and Innovation scores as highlighted in the Frost Radar methodology. The document presents competitive profiles on each of the companies in the Frost Radar based on their strengths, opportunities, and a small discussion on their positioning. Frost & Sullivan analyzes hundreds of companies in the industry and benchmarks them across 10 criteria on the Frost Radar, where the leading companies in the industry are then positioned. Industry leaders on both the Growth and Innovation indices are recognized as best practice recipients.