The demand for artificial intelligence and cloud computing services is surging and Melbourne is becoming Australia’s number one data centre project. A new data shows that almost 75 percent of new data centres in the country are developed in the Victorian capital, cementing its place as a leading player in the country’s ICT infrastructure.
Among the reasons for the city’s appeal to data centre developers is its strong power grid, favourable climate for cooling systems and ability to connect to international submarine cables. But these advantages, along with the supporting policies of the state government to tech investments, have helped make this the perfect place for the companies who wish to expand their data storage and processing capabilities.
More than 100 major tech giants and cloud service providers are among the ones who have flocked to Melbourne to settle or grow their footprint in data centre space. Support for the growing adoption of AI technologies in different industries including finance, healthcare, manufacturing and retail would not be possible without these facilities. These state of the art data centres are designed to meet the increased demand for computing resources in the most efficient way to power more AI powered applications and services.
Melbourne’s tech credentials are booming, and not just that – it’s also a big earner for the local economy. They are bringing in a skilled workforce to the region and creating thousands of jobs in construction and ongoing operations. The surge of tech investment is also driving innovation and entrepreneurship, with both startups and incumbent companies making use of the more digitised infrastructure.
Despite this, the ever growing size of data centres in Melbourne also brings up the important issues of sustainability and energy consumption. These facilities require lots of electricity in order to function, which is why the environmental impact of these facilities is being increasingly addressed with green technologies and solutions to the sources of renewable energy. Some developers are using solar panels, wind power and advance cooling systems to cut energy costs and slash carbon emissions.
The Victorian government has been proactive in its response to this growth, working with industry stakeholders constantly to make sure data capacity expansion goes hand in hand with the state’s environmental goals and urban planning aims. Guidelines for the sustainable design and operation of data centres are being developed, and alternative energy management strategies such as heat recovery are explored.
Meanwhile, Melbourne is cementing itself as a data centre power house, and is also in the process of building a broader tech ecosystem. Since universities and private companies are working together to carry out cutting edge projects in the town, AI research and development activities have risen in the city. Academia and industry also play a partnership that contributes to making Melbourne an attractive tech hub, and draws talent from all over the world.
The data centre boom also is making waves in other industries, such as telecommunications and cybersecurity. More and more sensitive data is being stored and processed in these facilities, so increasing security measures and robust network infrastructure are needed. Increased investment on these subjects has resulted in Melbourne’s overall tech capabilities being further tightened.
Melbourne’s data centre market is expected to grow sharply over the next few years, as the digital transformation across industries continues and AI and cloud adoption rises. Nevertheless, this growth will have to be carefully controlled so that it continues to appreciate while remaining long term beneficial to the local community and economy.
With Melbourne fast establishing itself as a centre of excellence for the world’s data centres, the city is poised to help set the course for Australia’s future in digital and to put Australia at the centre of the global tech storey. Attracting and nurturing these critical infrastructure projects has contributed to the city’s success in transitioning and adapting to the changing requirements of the digital economy, and makes it a potential world class technology centre.
