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Outsourced data centre market grows on the back of the Cloud

Mike Gee | Sept. 3, 2015
Data centre services revenue in Australia totalled AU$826 million -- a growth of 18.3 per cent over 2013.

“To cater to the growing demand for datacentre services, specialist providers, including local providers such as NEXTDC, Metronode and Canberra Data Centres, and global providers such as Equinix, Global Switch and Digital Realty, have added datacentre capacity, either by expanding their existing data centre facilities or building new ones. A growing trend for large IT service providers and telcos that own their own datacentres to consolidate their data centre footprint by shutting down older, less efficient datacentres and leasing data centre space within the larger and newer facilities of these datacentre specialists, as it is more cost effective."

The adoption of modular datacentres is still in an early growth phase, however, momentum is beginning to build in the market and stronger adoption will occur as prices fall further. Modular datacentres cater to niche segments of the market where companies or government departments require their own built facilities. They have higher relative cost, and most are deployed in outdoor and often remote locations, in industries such as healthcare, education, construction, mining, defence, manufacturing, oiland gas and renewable energies.

“Another growing trend over the last two years is for commercial property owners to acquire existing datacentres or build new datacentres and then lease them to datacentre specialist providers, IT service providers or individual companies. Examples include Asia Pacific Data Centres (APDC) and Keppel DC Real Estate Investment Trust, both of which have purchased facilities from major local data centre providers,” Harpur said.

Datacentre providers have several challenges, according to Frost & Sullivan. Significant new datacentre capacity has entered the market over the last few years causing lower than average occupancy rates, and placing downward pressure on datacentre pricing.

However, additional capacity is generally being absorbed quickly. Securing sites in CBD locations and gaining access to sufficient power is increasingly challenging and it is becoming increasingly difficult for datacentre owners to plan for additional capacity.


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