Australia is rapidly emerging as a major global hub for data centres, with more than 160 facilities already operating nationwide and nearly 100 more planned or under development to support the growing demand for artificial intelligence and digital infrastructure.
Driven by technology giants such as Amazon, Microsoft, Google, Meta and Apple, the expansion is largely concentrated in Sydney and Melbourne, where large-scale projects are transforming outer suburban and industrial areas into digital infrastructure hubs.
In Victoria, more than 30 data centre projects are currently in the pipeline. Among them is a proposed 350-hectare facility in Plumpton, north-west of Melbourne, expected to deliver enough capacity to power up to 2.5 million homes.
Meanwhile, New South Wales is advancing several major projects, including a 504-megawatt data centre campus in Marsden Park that is set to become the largest in the Southern Hemisphere.
Industry leaders say Australia has a unique opportunity to position itself as a global leader in AI and data storage, with some experts describing the AI boom as potentially more transformative for the economy than the mining boom.
Government support through fast-tracked approvals has helped attract significant investment, with Australia ranked among the world’s most attractive destinations for data centre development.
However, the rapid growth has also raised concerns over energy and water consumption. Experts warn that data centre electricity demand could triple by 2030, while increased infrastructure requirements may place additional pressure on power networks and utility costs.
Despite concerns from some local communities, industry representatives say data centres are typically built near existing power infrastructure and available land, making outer suburban areas the preferred locations for future developments.
As global competition intensifies, industry leaders believe the next few years will be critical in determining whether Australia can secure its place as one of the world’s leading centres for artificial intelligence and digital innovation.
