Australia’s data center landscape is entering a phase of growth, driven by the adoption of AI, cloud computing, and digital transformation.

Multi-billion-dollar investments from global hyperscalers and leading domestic operators are reshaping the market, positioning Australia as a critical hub in the Asia-Pacific digital ecosystem.

The current developments reflect both scale and diversification, combined with companies investing capital to scale infrastructure, energy integration, and AI-ready capacity.

These reflect Australia’s shift towards building data centers in line with the foundation of an AI-powered economy and the Australian government's national interest framework for data centers and AI infrastructure, which establishes regulatory oversight for this data center sector.

In this article, we present the 10 upcoming data centers in Australia, including planned, under-construction, and expanding projects.

Top 10 Upcoming Data Centers in Australia

Major operators like NextDC and AirTrunk are leading large-scale developments across key hubs such as Sydney and Melbourne. Projects like S7 Sydney (550 MW+) and MEL2 Melbourne (354 MW) highlight Australia's becoming a regional digital infrastructure powerhouse, while ongoing developments such as S4 Sydney and IC3 Super West reflect enterprise and hyperscale demand.

Meanwhile, capacity expansion is spreading beyond core metro areas. Facilities like SY9x by Equinix and emerging sites in Gold Coast, Geelong, and Sunshine Coast signal a shift toward distributed infrastructure. With multiple projects in planning and development stages, Australia is positioning itself to support next-generation technologies while playing its role in the Asia-Pacific data center ecosystem.

S7 Sydney Data Center (In Planning)

The S7 Sydney Data Center project is in the planning stage at the location Eastern Creek, a suburb of Sydney, in the state of New South Wales, Australia. It is a future hyperscale data center with over 550 MW capacity. It is being built to meet growing demand for AI, cloud services, and digital infrastructure in the nearby regions of New South Wales.

Located 35 kilometers (22 mi) west of the Sydney central business district (CBD), part of the Greater Western Sydney region. It will provide strong connectivity and support major infrastructure needs.

On completion, S7 Sydney data center will offer long-term scale, sovereign data residency, and hyperscale-ready power density and support high-power requirements for enterprise, government, and global technology platforms. It will also strengthen Sydney’s position as a key digital hub.

MEL2 Data Center

The MEL2 data center project in Melbourne marks a major step in Australia’s digital infrastructure growth. Led by AirTrunk, MEL2 will deliver more than 354 MW of capacity from a new site in Melbourne’s north-west, with an investment of over USD 3.57 billion (A$5 billion). Together with MEL1, total capacity in Melbourne will exceed 630 MW, and overall investment in Victoria will cross USD 5.02 billion (A$7 billion).

Across Australia, including SYD1, SYD2, SYD3, MEL1, and MEL2, the platform will provide over 1.2 GW of data center capacity to support AI and cloud providers.

MEL2 will also bring economic benefits. It is expected to create over 4,000 construction jobs and more than 200 direct operational roles, along with around 1,000 additional jobs across the data center ecosystem. Supported by Invest Victoria, the project aligns with Australia’s National AI Plan (2025), helping local businesses grow.

The data center industry continues to support sustainable growth, contributing USD 9.04 billion (A$12.6 billion) per terawatt-hour of energy, using less than 0.1% of water, and investing heavily in power grid and recycled water infrastructure.

S4 Sydney Data Center (In Development)

S4 Sydney data center is being developed for a capacity of 350 MW in Horsley Park, a suburb of Sydney in the state of New South Wales, Australia, located 39 kilometers west of the Sydney central business district in the local government area of the City of Fairfield.

It is in the planning stage and will use advanced technology, focusing on high reliability. The facility is specifically designed to support partners and the needs of large cloud companies, businesses, and government customers.

M4 Melbourne Data Center (In Planning)

M4 Melbourne is a planned data center in the Fishermans Bend area of Port Melbourne. It aims to deliver 150 MW of IT capacity. The facility will be an NVIDIA-certified AI factory and will connect with other data centers in Melbourne to provide access to cloud, AI, and large enterprise platforms.

M4 Melbourne is designed for large cloud providers, tech companies, businesses, and government users. It will act as a high-tech hub with strong security and compliance standards (ISO, SOC, and PCI-DSS), as well as sustainability controls.

The facility will be built and operated to reliability standards (Tier IV), including operational sustainability, and will also include a 100% uptime guarantee. It will provide a secure, reliable infrastructure for critical and regulated workloads.

S5 Sydney Data Center (In Planning)

The S5 Sydney Data Center is being planned in Macquarie Park, a suburb in the Northern Sydney region of Sydney, New South Wales, Australia. It is located 13 kilometers northwest of the Sydney central business district in the local government area of the City of Ryde.

The company has announced this as its fifth data center in Sydney and will offer more than 80 MW of IT capacity. The design and construction will follow high reliability standards (Uptime Tier IV).

IC3 Super West Data Center

IC3 Super West is a colocation data center at the Macquarie Park campus. It is built for AI and cloud services. The required power has already been secured, and the facility is expected to be ready for use in 2026.

IC3 Super West is Australia’s first data center built specially for AI and cloud services. It is located at the 65 MW Macquarie Park Data Center Campus in Sydney’s north zone and is currently under construction. All the required power for the project has already been secured.

The design is flexible, with customized data hall spaces that can support air cooling, liquid cooling, and hybrid-cooled environments for AI and cloud workloads. The facility will be secure and offer design and commercial flexibility to meet customer needs now and in the future.

SY9x Data Center

SY9x is Equinix’s first xScale data center in Sydney with colocation space. It is located in Rosehill, near the Western Sydney CBD of Parramatta.

This facility enables hyperscale companies to add core deployments to their existing access point footprints on Equinix’s global platform. It currently offers over 14 MW of capacity and will grow to more than 28 MW once fully completed.

GC1 Gold Coast Data Center (In Planning)

GC1 Gold Coast is a proposed 6 MW data center planned for Southport. It aims to expand NEXTDC’s digital infrastructure into one of the fastest-growing areas in South East Queensland. Located in the Gold Coast’s central business district, it will help meet the rising need for sovereign digital capacity closer to businesses and end users.

The project is still in the planning stage. Once built, GC1 Gold Coast will improve connectivity in the region and support the long-term growth of businesses, technology, and digital services across South East Queensland.

GE1 Geelong Data Center (In Development)

GE1 Geelong is a planned 4 MW data center in Corio. It is being developed to meet the growing demand for digital infrastructure in regional Victoria. Located in an important industrial and logistics area, it will provide secure, high-performance services closer to regional businesses and key industries.

GE1 Geelong is located between Melbourne and regional Victoria. It is designed to support existing city infrastructure while enabling local data processing, improved reliability, and enhanced connectivity. Once built, it will help long-term digital growth by providing modern infrastructure for businesses, government, and regional innovation.

SC2 Sunshine Coast Data Center (In Development)

This data center provides low-latency connectivity, high data capacity, high speed, and reliability for regional businesses. The edge site facilities connect people and businesses to major networks and digital service providers across Australia.

With direct access to the JAS submarine cable, users can benefit from quicker data transfer, better security, and stronger reliability. It helps businesses in the Sunshine Coast and Queensland region stay connected and competitive with secure data center services.

Global Hyperscaler Investments

The global investments from Amazon Web Services and Microsoft Azure instill confidence in Australia’s regulatory environment, energy transition strategy, and long-term AI potential.

Amazon Web Services Investment of USD 14.35 billion (AU$20 billion)

Investment Commitment

Amazon has announced it will invest USD 14.35 billion (AU$20 billion) between 2025 and 2029 to expand, operate, and maintain its data centers in Australia.

Infrastructure Expansion

The Australian government and Amazon have jointly announced that AWS will invest over the next five years to expand its data centers in Sydney and Melbourne.

This investment will help Australia build AI capabilities through secure, reliable infrastructure. In addition, it will create economic benefits for Australians, including skilled jobs and infrastructure to support advanced AI and supercomputing needs.

Renewable Energy Integration

Amazon is also expanding its high-quality data center infrastructure, adding more renewable energy projects.

To support this expansion, Amazon is investing in three new solar farms in Victoria and Queensland. European Energy will build and operate these projects, and Amazon will use more than 170 MW of power from them.

Overall, AWS plans to invest USD 14.35 billion (AU$20 billion) by 2029 to strengthen Australia’s digital infrastructure.

Microsoft Azure Investment of A$25 billion

AI & Cloud Expansion

Microsoft will invest USD 17.93 billion (A$25 billion) in Australia for AI infrastructure, security, and skills, enabling an increase in computing power and AI capacity by 2029. This development aligns with the Australian government’s expectations for data center and AI infrastructure developers.

National Impact

Microsoft’s investment in new digital infrastructure enables Australia to lead in the technological shift. It will help Australia capture more of the AI value chain locally, supporting high-skilled jobs and contributing to the energy transition. This signifies Australia as a hub for AI infrastructure investment and data center development.

Infrastructure Scaling

This commitment is a continuation of the 2023 one for USD 3.59 billion (A$5 billion) to expand Australia’s cloud infrastructure, with its data center footprint growing from 20 to 29 sites across Sydney, Melbourne, and Canberra. These facilities will meet the standards of performance, security, and compliance, ensuring that Australian organizations across both the public and private sectors can access world-class AI and cloud capabilities on home soil.

Conclusion

Market Outlook

The current pipeline of data center developments across Australia signals capacity expansion and a transformation of Australia’s digital infrastructure. With investments in billions of dollars, the sector is scaling at a pace with global AI and cloud demand and reinforcing Australia’s position as a digital hub in the region.

Projects from AirTrunk and NEXTDC demonstrate how local players are building hyperscale-ready platforms, while global investments from Amazon Web Services and Microsoft Azure highlight confidence in Australia’s regulatory environment, energy transition, and AI potential.

Future Opportunities

Looking ahead, Australia’s data center market will play a central role in enabling AI innovation, digital sovereignty, and economic resilience. As these projects move from planning to operation, they will support hyperscale demand and create new opportunities for enterprises, governments, and local industries, thereby integrating Australia into the global digital economy.

Track Australia’s Data Center Opportunities with Confidence

As Australia expands with investments from global hyperscalers, it is important to stay updated on upcoming data center projects in Australia to remain competitive in the market.

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