Australia Data Center Chip Market

Australia Data Center Chip Market Overview:

The Australia data center chip market size reached USD 230.0 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 366.4 Million by 2033, exhibiting a growth rate (CAGR) of 5.31% during 2025-2033. The market is fueled by rising data processing requirements because of digitalization, the growth of cloud computing services, technology advances in AI and machine learning, government investment in digital infrastructure, and the growing necessity for efficient usage of energy to meet the expanding industrial and technological demands.

Australia Data Center Chip Market Trends:

Integration of AI and Machine Learning in Data Centers

The intersection of artificial intelligence (AI) and machine learning with data center operations is a leading trend that is transforming Australia's data infrastructure. With AI applications becoming mainstream in industries such as finance, healthcare, and telecommunications, the need for data centers that can support AI workloads increases. This transformation requires custom processors designed to excel in parallel processing and real-time data analysis. Therefore, data center operators are spending on high-performance chips, including Graphics Processing Units (GPUs) and AI-specific accelerators, to process complex AI algorithms efficiently. This trend not only improves computational power but also improves energy efficiency, responding to the increasing concerns regarding the environmental footprint of large-scale data operations. For instance, in February 2025, Australia's Goodman Group raised USD 2.54 Billion to support its data center growth. This move was driven by increased demand for data centers, fueled by the expansion of cloud computing, AI, and machine learning. Goodman further plans to expand its data center capacity with new projects in cities such as Sydney and Melbourne, among others.

Adoption of Edge Computing and Its Impact on Chip Requirements

The trend towards edge computing is heavily impacting the Australian data center chip market. Edge computing refers to processing data near the source, lowering latency and bandwidth consumption, which is important for use cases such as autonomous vehicles and the Internet of Things (IoT). This new paradigm necessitates data centers to adopt specialized chips that can support localized data processing efficiently. Processors for edge environments need to strike a balance between performance and low power draw to address the needs of distributed networks. Therefore, there's an increasing market for chips optimized for edge computing, which encourages manufacturers to be innovative and come up with solutions that address these particular needs. ​For instance, in January 2025, Macquarie Group committed up to USD 5 Billion to Applied Digital’s AI data centers, responding to the growing demand for AI infrastructure driven by technologies like ChatGPT. The agreement includes an option for an additional USD 4.1 Billion investment in future data centers. These AI-focused centers require specialized chips capable of complex computations and low-latency processing for edge computing and AI tasks. Macquarie’s investment underscores the expanding infrastructure supporting these needs and drives innovation in chip development for AI and data security.

Emphasis on Energy Efficiency and Sustainable Chip Design

Sustainability has become a focal point in the design and operation of data centers, driving the demand for energy-efficient chips. Data centers are among the largest consumers of electricity, and optimizing energy use is both a financial and environmental imperative. Manufacturers are responding by developing processors that deliver high performance per watt, utilizing advanced fabrication technologies and architectures. Additionally, integrating renewable energy sources and implementing advanced cooling solutions are part of a holistic approach to reduce the carbon footprint of data centers. This trend aligns with global efforts to combat climate change and meets the increasing regulatory and consumer expectations for corporate environmental responsibility. For instance, in June 2024, Equinix invested AUD 240 Million (USD 160 Million) to expand its data centers in Sydney and Melbourne, adding 4,175 cabinets to meet the rising demand for AI infrastructure. The expansion includes advanced liquid cooling technologies and sustainable practices, such as a 95% recycling rate and reduced waste through digital twin approaches. This initiative strengthens Sydney and Melbourne's roles as key digital hubs while ensuring environmentally responsible development.

Australia Data Center Chip Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for 2025-2033. Our report has categorized the market based on chip type, data center size, and industry vertical.

Chip Type Insights:

• GPU
• ASIC
• FGPA
• CPU
• Others

The report has provided a detailed breakup and analysis of the market based on the chip type. This includes GPU, ASIC, FGPA, CPU, and others.

 Data Center Size Insights:

• Small and Medium Size
• Large Size

The report has provided a detailed breakup and analysis of the market based on the data center size. This includes small and medium size and large size.

Industry Vertical Insights:

• BFSI
• Manufacturing
• Government
• IT and Telecom
• Retail
• Transportation
• Energy and Utilities
• Others

The report has provided a detailed breakup and analysis of the market based on the industry vertical. This includes BFSI, manufacturing, government, it and telecom, retail, transportation, energy and utilities, and others.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Data Center Chip Market News:

• In March 2025, Partners Group agreed to acquire GreenSquare Data Centers (GreenSquareDC) for up to AUD 1.2 Billion to transform it into a next-generation data center platform in Australia. The acquisition will enable GreenSquareDC to develop large-scale, sustainable data centers in key Australian cities, supporting global hyperscale customers. The company aims to expand its sites in Sydney, Melbourne, and Perth, focusing on efficient, sustainable design and high-density server capabilities.
• In November 2024, Microsoft unveiled two new infrastructure chips designed to enhance AI operations and improve data security in its data centers. The chips are part of Microsoft's ongoing effort to develop custom silicon for general-purpose applications, particularly focusing on accelerating AI capabilities. This move comes as part of the company's broader strategy to support growing AI demands and optimize data center performance.
• In October 2024, Global Switch finalized an agreement to sell its Australian data center assets to HMC Capital for AUD 2.12 Billion (USD 1.41 Billion). The transaction, expected to close by early 2025, will provide Global Switch with significant capital to expand its operations in other high-growth markets. The sale includes key data centers in Sydney’s Ultimo area, which will enable HMC Capital to enhance its digital infrastructure platform.
• In September 2024, Blackstone acquired Australian data center operator AirTrunk for AUD 24 Billion (USD 16.12 Billion) as demand for data centers supporting cloud computing and AI grows. The acquisition will expand Blackstone’s data center holdings, adding to its USD 55 Billion portfolio and USD 70 Billion pipeline. This move is part of Blackstone’s strategy to become the leading global digital infrastructure investor.

Australia Data Center Chip Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia data center chip market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia data center chip market on the basis of chip type?
• What is the breakup of the Australia data center chip market on the basis of data center size?
• What is the breakup of the Australia data center chip market on the basis of industry vertical?
• What are the various stages in the value chain of the Australia data center chip market? 
• What are the key driving factors and challenges in the Australia data center chip market?
• What is the structure of the Australia data center chip market and who are the key players?
• What is the degree of competition in the Australia data center chip market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia data center chip market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia data center chip market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia data center chip industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.