Study Of Data Center Water Consumption In Australia

Study Of Data Center Water Consumption In Australia Market Analysis

The Study Of Data Center Water Consumption In Australia Market size is estimated at 112.23 billion liters in 2025, and is expected to reach 219.90 billion liters by 2030, at a CAGR of 14.4% during the forecast period (2025-2030).

• IT Load Capacity: The IT load capacity of Australia's colocation data center market is around 1,981.7 MW in 2024.
• Geographical Significance: Australia experiences diverse climates across its eight states and territories. Most regions witness four distinct seasons, while the tropical north observes wet and dry seasons. Australia's seasonal calendar contrasts with that of the northern hemisphere. Summer spans from December to February, followed by autumn from March to May, winter from June to August, and spring from September to November. Our research suggests that Australia's water consumption is projected to exceed 98 billion liters in 2024.
• Raised Floor Space: Australia's colocation data center raised floor space is about 7.11 million sq. ft in 2024.
• Projected Installed Racks: In 2024, Australia is set to install over 283,000 racks in its colocation data centers.

Study Of Data Center Water Consumption In Australia Market Trends

Expanding Smartphone User Base Drives Demand for Colocation Data Centers

• In 2023, Australia recorded 22.74 million smartphone users, with projections indicating a growth at a CAGR of 1.55%, reaching approximately 24.98 million by 2029.
• Smartphones play a crucial role in Australian society, with 79.60% of the population utilizing them. Significantly, 64% of adults in Australia use their smartphones before sleeping. Australia's mobile data consumption ranks second globally, just after the United States. In 2019, 32% of Australians aged 14 and above (6.2 million people) owned prepaid mobile phones, typically recharging them every seven weeks. Furthermore, 71% of teenagers spend over 5 hours daily on social media.
• Australia's mobile penetration rate stands at 130%, with an average of 104 apps installed per smartphone. The Australian mobile commerce market, valued at USD 12.1 billion in 2019, is expected to exceed USD 20 billion by 2023. The country's strong preference for smartphones necessitates enhanced data center capabilities to manage the increasing data volume. As smartphones generate substantial data requiring real-time processing and analysis, the growing user base is likely to drive demand for additional racks in Australian data centers.

Australia's AI Progress Fuels Surge in Demand for Mega Data Centers

• Research indicates that more than 65% of Australian businesses have adopted Artificial Intelligence (AI) technologies, with an additional 25% planning to do so within the next year. The surge of emerging technologies, especially AI, offers operational advantages, enabling businesses to enhance revenue and bolster cyber safety and security.
• Optus, Telstra, and Vodafone dominate the Australian telecom market, providing high-speed 5G services nationwide.
• AI empowers businesses to forecast product demand and fine-tune their supply chains, thereby reducing costs associated with overstocking or understocking. Furthermore, automating administrative tasks not only saves time but also boosts labor productivity.
• The swift evolution of AI stands to revolutionize industries nationwide, leading to unprecedented data generation and a heightened demand for mega data centers to manage and process this influx.

Study Of Data Center Water Consumption In Australia Industry Overview

In Australia's water consumption data center market, which is moderately fragmented, five key players emerge as leaders. At the forefront are Equinix Inc, Amazon Web Services, Inc., NEXTDC Limited, Microsoft Corporation, and Keppel DC REIT Management Pte. Ltd.

For instance, Microsoft is ramping up its investments in water access and replenishment. The company is thrilled to share that it has inked a preliminary deal with WaterEquity, positioning itself as the inaugural investor in the Water and Climate Resilience Fund, pending the finalization of documents. This fund is dedicated to bolstering municipal-level, climate-resilient water and sanitation infrastructure, specifically targeting low-income communities across South and Southeast Asia, sub-Saharan Africa, and Latin America. This investment marks Microsoft's third water-focused initiative, propelled by its $1 Billion Climate Innovation Fund.

Study Of Data Center Water Consumption In Australia Market Leaders

Study Of Data Center Water Consumption In Australia Market News

• May 2024: OVHcloud has unveiled its third data center in Sydney, marking a significant step in its sustainability journey in Australia. This new facility, equipped with OVHcloud's proprietary water cooling technology, is set to be the company's most eco-friendly data center in the country. By integrating this advanced cooling system with a cloud infrastructure tailored for mission-critical workloads, the data center is poised to address the surging demand for high-performance cloud solutions, driven by the rapid embrace of emerging technologies.
• November 2023: As energy-intensive and heat-generating artificial intelligence computing technologies surge in popularity, Australian data centers are poised to consume significantly more power and face greater cooling challenges. With the ascent of AI computing, these data centers are set to exert mounting pressure on Australia's energy grid. Furthermore, as Australia pivots towards renewable energy infrastructure, data center operators confront a tangible risk of power shortages.