APPD Market Report Article
Melbourne
February 28, 2023Andrew Ballantyne, Head of Research, Australia
0.0%
USD 350
MRC
Stable
Providers and operators increasingly considering AZs in Melbourne
- Global hyperscalers continued to demonstrate appetite for self-build sites as Melbourne becomes clearly defined as Australia’s second primary hyperscale market.
- In late 2022, Telstra announced the Melbourne availability zone (AZ) for Telstra Private Cloud.
Development activity increases across segments
- NextDC opened its largest data centre (150MW) to date in M3 Melbourne in 4Q22. The asset is approved as a sovereign data centre under new government classifications.
Sovereignty and security remain top priority for DC customers
- As of July 2022, Australia government agencies must use accredited data centre providers on the new panel (administered by the Australian Digital Transformation Agency) to host sensitive data systems. Major corporates are expected to follow suit.
Outlook: Melbourne expected to be key region for future expansions
- Melbourne is a priority market for site acquisitions, for hyperscalers and co-locaters to support national operations through performance-sensitive workloads.
