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In the News: Australian Data Center Headlines Featuring Digital Realty, BT, AirTrunk, NEXTDC & More

Colocation Sydney

The top data center hub in the Asia Pacific region, Australia’s data center market is robust, dynamic, agile and incredibly well connected, with 18 subsea cables, 228 data centers and 570+ service providers.

As is the case for most of the developed world, Cloud computing and an insatiable demand for data is driving the growth of Australia’s colocation sector, with revenues tipped to double from the $565 billion market it is today, to $956 billion by 2021*.

Australia’s connectivity is impressive and its cloud footprint vast, with Google, Microsoft and Alibaba each expanding their Australian presence this year.

The country’s international connectivity is mainly serviced by the Southern Cross Cables (diverse path from Sydney to US via New Zealand, Fiji and Hawaii), PPC-1 (Sydney to Guam), Australian Japan Cable (Sydney to Japan via Guam) and SMW-3 (Perth to Singapore via Jakarta).

Sydney is Australia’s top data center market with 66 colocation facilities and over 400 service providers. The city is also a major interconnection hub as it is the landing point for all major east coast submarine cables, the host of the Australian Stock Exchange and a major commerce hub for the country. Sydney is also one of the top five regions with the most direct connections to the cloud in the world, ranking third, ahead of Dallas and London.

Melbourne’s connectivity ecosystem is also going from strength-to-strength, home to 42 data centers and 188 service providers, making it the second largest colocation ecosystem in the country.

By the end of 2016, Sydney and Melbourne were the combined source of supply for a staggering 54,000 racks across 1.8 million square feet.

Major players such as Equinix, NEXTDC, Telstra, Global Switch, Metronode, AAPT, Vocus, IBM, Singtel and Fujitsu hold a strong data center presence in Australia.

Despite the region’s high power and bandwidth costs (compared to its neighbors within APAC), the Australian data center market shows no signs of slowing down. From data center expansions, construction and go-lives to acquisitions and new entrants; these are the top industry headlines that grabbed our attention over the past month.

Digital Realty to Build New Sydney Data Center
Global colocation provider, Digital Realty, has announced the construction of a new data center in Sydney. The 14-megawatt facility, named SYD11, will span more than 16,000 square meters and create up to 500 jobs during the 12-month construction phase. Once operational, the facility will link with Digital Realty’s existing SYD10 site, delivering a connected campus for local and international customers, and creating up to 30 permanent jobs. Digital Realty CEO, A. William Stein, said the expansion demonstrates the company’s commitment to enterprise customers throughout the Asia Pacific region.

Digital Realty Data Centers

AirTrunk Opens First Australian Data Center
Singapore-based hyper-scale data center specialist, AirTrunk, last month unveiled its first Australian facility, a mammoth 64,000 square meter data center in Huntingwood, Western Sydney. The 80MW facility was constructed at a cost of AU$200 million, and AirTrunk claims it will be the largest in the country once fully completed. The company is also building a 16,000 square meter, 50MW facility in Melbourne. Both projects are expected to add hundreds of jobs to the local economies. AirTrunk’s executive team is comprised of former senior executives from major data center operators including Digital Realty, NEXTDC and Metronode.

Telstra Unveils New Cyber Security Center in Melbourne
Australian telecoms giant, Telstra, has revealed its new cyber security center in Melbourne, designed to help customers handle cyber threats and to monitor malicious applications transmitted over the network. Telstra’s 400,000 km cable network already accounts for over 30% of the Asia Pacific’s total cable infrastructure, and the new site will only strengthen Telstra’s position as a global network and security services provider, according to Telstra CEO, Andrew Penn. The company has plans to establish additional security centers in Asia, Europe and the USA.

NEXTDC Goes Live with APAC’s First Colocation Tier IV Building Certified Data Center
One of Australia’s leading independent data center operators, NEXTDC, has opened its new B2 facility in Fortitude Valley, Brisbane. B2 is the first colocation facility in the APAC region to achieve Uptime Tier IV Certification for both Design Documents and Constructed Facility. The 12MW data center offers 3,000 square meters of technical floor space and is designed to withstand distribution path interruptions and equipment failures. Strategically located close to key telecoms and power infrastructure, B2 will offer connectivity to the world’s largest cloud computing platforms and allow customers to access AWS, SoftLayer and Azure. See Cloudscene’s full interview with NEXTDC in our latest blog post.

Cloudscene - NEXTDC

Servers Australia Plans Acquisition Hat Trick for 2017
After completing its acquisition of Brisbane-based Oz Servers last month, Servers Australia plans to conduct a further two major acquisitions by the end of the year. The company has not yet revealed the identity of its targets, but according to Servers Australia CEO, Jared Hirst, the acquisitions will deliver several million dollars of revenue for the company.

Servers Australia has its sights set firmly on becoming the country’s largest colocation and hosting provider, after having already acquired three established hosting companies – Dedicated Servers, Indigo and Syncom – in 2016. Since its establishment in 2006, Servers Australia has rapidly expanded its footprint with additional facilities in Sydney, Melbourne, Brisbane and Perth.

British Telecom to Launch Australian Cyber Security Center
British Telecom (BT) is planning to open its first cyber security research center outside the United Kingdom, with the launch of a new site in Sydney. The facility will host BT’s Asia Pacific cyber-security systems, integration and services teams. The center will develop security services for local and international deployment, including machine learning, big data engineering, cloud computing and data science analytics. BT says the Sydney hub will allow the company to access a rich pool of cyber security talent in the state, with more than 170 new jobs to be filled over five years. The NSW government is providing a $1.67 million grant to assist with construction and BT will invest another $2 million in capital infrastructure.

BT Data Centers

Superloop to Acquire Adelaide-based Wireless ISP
Asia Pacific dark fibre provider, Superloop, has announced an agreement to acquire Adelaide-based wireless ISP, NuSkope. Established in 2007, NuSkope delivers broadband Internet access to businesses, schools and homes across South Australia, and has developed a reputation for exceptional performance and customer service. Superloop CEO, Bevan Slattery, said the acquisition gives Superloop a strategic portfolio of assets including wireless network infrastructure, a valuable CRM database and a sophisticated network assessment application.

Canberra Data Centres Begins Construction of $150m Data Center
IT Storage firm, Canberra Data Centres (CDC), has commenced construction of a new 20-megawatt, $150 million data center in Fyshwick, Australian Capital Territory (ACT). The facility will be built to Tier III standards but will include Tier IV electrical infrastructure, and is said to exceed the government’s ‘top secret’ requirements. The new facility brings CDC’s total ACT investment to over $500 million.

The company has three existing data centers in Hume and Fyshwick, delivering a combined 39 megawatts of capacity. CDC CEO, Greg Boorer, said the Australian government expected its data storage requirements to grow 100-fold over the next decade, requiring substantially more data center capacity to meet this demand.

For more market intelligence on Australia’s data center sector, visit the market page listed on Cloudscene or take a look at the top ten data center rankings in Australia.


*According to research consultancy firm, Structure Research, Australia Market Report (2017)

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