Australia Emerges as a Hub for Digital Infrastructure
Australia is experiencing a remarkable boom in the development and expansion of data centres, driven by the increasing demand for cloud computing and artificial intelligence (AI). As AI reshapes industries and accelerates innovation, the need for scalable and efficient data infrastructure has become critical. This trend is positioning Australia as a key player in the global digital economy.
AI and Cloud Computing Demand
The adoption of AI and cloud computing is expected to significantly increase the demand for data centres in Australia. By 2030, over 175 new facilities will be required, representing a massive investment of $26 billion. Deployable capacity is projected to more than double, growing from 1350 MW in 2024 to 3100 MW by 2030. This expansion highlights the essential role data centres play in supporting AI-driven applications and services
Investment Boom
Australia’s data centre sector has become a magnet for both domestic and international investors:
- Partners Group Acquisition: Swiss private equity firm Partners Group acquired GreenSquare DC for $1.2 billion, showcasing global interest in Australian assets.
- AWS Expansion: Amazon Web Services (AWS) announced plans to invest an additional $13 billion into Australian cloud infrastructure, further boosting local capacity.
The AirTrunk Acquisition: A Landmark Deal
One of the most significant developments in Australia’s data centre industry was Blackstone’s acquisition of AirTrunk, a Sydney-based hyperscale data centre provider, for AU$24 billion. This deal, completed in late 2024, marks the largest-ever transaction in Australia’s digital infrastructure sector and underscores the country’s growing importance as a regional hub for AI-ready facilities.
AirTrunk, founded in Sydney in 2014, has evolved into a leading Asia-Pacific platform with campuses across Australia, Japan, Malaysia, Hong Kong, and Singapore. The acquisition by Blackstone—a global leader in alternative asset management—represents its largest investment in the Asia-Pacific region. Blackstone’s focus on leveraging AirTrunk’s expertise to meet rising AI demand highlights Australia’s strategic role in supporting the next wave of cloud services and energy-efficient digital infrastructure.
Robin Khuda, AirTrunk’s founder and CEO, emphasised how this transaction positions the company to capture growth opportunities from AI while contributing to sustainable energy transitions across the region. With over 800 MW of capacity already committed to customers and plans to expand further, AirTrunk is set to play a pivotal role in shaping Australia’s data centre landscape.
AI-Specific Infrastructure
The rise of AI has introduced unique requirements for data centres. High-intensity computing workloads demand hyperscale facilities capable of supporting advanced training and inference tasks. These centres are critical for enabling efficient processing of massive datasets that drive AI innovation.
Energy Challenges and Sustainability
The rapid expansion of data centres comes with challenges around energy consumption. Operators are increasingly adopting renewable energy solutions and collaborating with utilities to manage grid demands while meeting power needs. Sustainability remains a key focus as providers scale operations to support AI-driven services.
Strategic Positioning
Australia is strategically positioning itself as a regional hub for AI-ready data centres. Its proximity to Asia-Pacific markets, strong AI research capabilities, and government support for digital technologies make it an attractive destination for investment. By fostering growth in this sector, Australia aims to solidify its role as a leader in global digital infrastructure.
What next for AI Data Centres?
Australia’s data centre sector is rapidly evolving into a cornerstone of its digital economy. With landmark deals like Blackstone’s acquisition of AirTrunk and significant investments from global players like AWS, the country is poised to lead the charge in supporting AI-driven innovation. As sustainability becomes increasingly important, Australia’s focus on energy-efficient infrastructure ensures that its growth remains both impactful and responsible. This revision places greater emphasis on Australia’s role and highlights the significance of AirTrunk’s acquisition within the broader context of local industry growth.
*Completion Of AirTrunk Acquisition By Blackstone – Marking New Era Of Growth