AI Boom Sparks Data Centre Expansion in Australia

Artificial intelligence and cloud computing are driving a surge in demand for data centres, with an estimated 175 new facilities needed by 2030. A report highlights that data infrastructure investment will require $26 billion to keep up with increasing connectivity and digital services. However, challenges such as energy supply and planning approvals could slow expansion.

Australia's growing digital economy is a major factor in this demand spike. As households double their connected devices by 2030, businesses are investing heavily in cloud services and AI-driven applications. According to industry analysis, Australia’s data centre capacity is expected to more than double from 1,350 MW in 2024 to 3,100 MW by 2030.

Investors are pouring capital into the sector, with offshore firms taking a keen interest. A Swiss private equity giant recently acquired an Australian data centre operator for $1.2 billion, while a local company was bought for $24 billion—the largest corporate deal last year. Global logistics firms are also shifting focus towards data infrastructure.

This expansion could reshape Australia’s commercial real estate landscape. The AI sector alone is expected to drive demand for nearly 500,000 square metres of office space, supporting roles from data analysts to software developers. However, securing renewable energy sources and expediting approvals will be crucial to sustaining growth in this high-demand market.

Source: Australian Financial Review, Microsoft, Technology Decisions