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Booming data centre market sees California-based company expand its presence

19 August 2011

A Nasdaq-listed provider of global data centre services, Equinix, has opened a US$65 million data centre in the south of Sydney.

Known as “SY3”, Equinix’s third Sydney International Business Exchange™ (IBX) data centre will allow it to meet increasing demand, particularly from cloud and financial services companies.

Establishing a third data centre in Sydney allows direct fibre connectivity to Equinix’s SY1 and SY2 data centres, located less than two kilometres away, providing access to more than 60 network providers across all three facilities. In addition, SY3 has direct access to major networks.

The recent growth of data centres in Australia has been driven in part by the uptake of cloud computing by major organisations. “Cloud” computing involves using remote network servers hosted on the Internet to store, process and manage data, rather than a local server or personal computer.

Demand for data centre services has also risen as organisations recognise the need to securely store vast amounts of customer data, for example, for compliance reasons.

An independent report from BuddeComm estimates the data centre market in Australia to be worth A$2 billion in 2011, and is expected to receive a further boost as high-speed broadband projects such as the National Broadband Network (NBN) come to fruition.

At a government level, The Australian Federal Government estimates that its agencies spend around A$850 million per year on data centres. In 2010, it released its Australian Government Data Centre Strategy for 2010-2025 which highlights the growing size and importance of the industry.

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