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Australia's Data Centre investment to exceed $26 billion by 2030

News • 25th Oct 2024 • 2 Min Read

Australia's Data Centre investment to exceed $26 billion by 2030

TechnologyEconomy & Policy#HRTech#HRCommunity

Author: Samriddhi Srivastava Samriddhi Srivastava
1K Reads
The data centre workforce is projected to grow by 8,300, reaching 17,900 by the end of the decade. This growth will create a wealth of opportunities in ICT professional roles and skilled trades, positioning Australia as a leader in the global data centre landscape.

A new report forecasts that investment in Australian data centre capacity is set to surpass AUD $26 billion by 2030, driven by the surging demand for digital services and technologies. 

The report, titled "Empowering Australia's Digital Future," was commissioned by major data centre operators and highlights the pivotal role these facilities play in bolstering digital infrastructure across various sectors.

Data centres are crucial for processing and storing data that supports cloud computing, essential services like emergency response, and the digital services Australians rely on daily. As the digital landscape evolves, so does the necessity for enhanced data centre capacity. 

The report indicates that the number of internet-connected devices in Australian households is expected to double by the decade's end, a trend that, coupled with increased business adoption of cloud and AI services, emphasizes the urgent need for expanded data centre infrastructure.

Forecasts reveal that deployable data centre capacity in Australia will more than double from 1,350 megawatts in 2024 to 3,100 megawatts by 2030, which will necessitate significant infrastructure investments. This expansion will create a robust backbone for Australia’s digital economy, enhancing efficiency across sectors that depend heavily on digital technologies.

The report also underscores the strategic significance of data centres within Australia’s digital framework. This foundational role is essential not only for driving productivity and fostering innovation but also for achieving the Australian government's target of creating 1.2 million tech jobs by 2030. 

The data centre workforce is projected to grow by 8,300, reaching 17,900 by the end of the decade. This growth will create a wealth of opportunities in ICT professional roles and skilled trades, positioning Australia as a leader in the global data centre landscape.

Tom McMahon, Partner at Mandala Partners, remarked, "Australia can become a leading global player in data centres, which will unlock our future digital success. At the same time, globally and in Australia, data centres are underlining renewable energy projects that will help us meet our renewable energy goals.

" He noted that addressing the workforce and infrastructure challenges collaboratively could create thousands of jobs while enhancing power usage efficiency, reducing the reliance on on-premise servers.

Renewable energy is a significant component of the broader data centre growth strategy. The report reveals that data centres currently consume about 1% of Australia's annual electricity, positioning them as critical players in the nation’s clean energy transition.

By consolidating data processing in energy-efficient data centres, the anticipated growth in capacity is expected to avert a 67% increase in energy consumption associated with on-premise servers. This shift is projected to yield approximately 2 terawatt hours in annual energy savings, aligning with Australia's environmental goals.

The forecasted investment in data centres is indicative of the growing recognition of their vital role in the digital economy. As demand for digital services continues to escalate, the anticipated expansion of data centres not only addresses immediate capacity needs but also positions Australia to be a formidable player in the global digital landscape. By prioritizing infrastructure investment, embracing renewable energy, and fostering workforce development, Australia is poised to achieve significant advancements in its digital future.

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