Scale your data centre operations in Australia's fastest growing market – Melbourne, Victoria.
More than
50
Operating data centres
188
Artificial intelligence firms
Victorian Government investment of
$5.5 million
in Sustainable Data Centre Action Plan
Victoria is emerging as a leading hub for data centres in the Asia Pacific.
Its competitiveness is driven by access to land, an increasingly renewable energy system, a highly skilled workforce, world-class research and a strong culture of innovation.
Demand for data centre capacity in Australia is projected to more than double by 2030,1 supporting connectivity, enabling digital transformation and increasing integration of Artificial Intelligence (AI) and Internet of Things (IoT) technologies across industries.
Businesses considering investment want speed, scale and social licence to operate. Victoria is meeting these needs through government coordination and services leveraging its key strengths.
Victoria’s data centres meet international standards such as ISO 27001, combining efficiency, reliability, and security with sustainable energy and water practices, supporting scalable, cost-effective operations.
Melbourne is ranked among the top ten data centre markets in the Asia-Pacific region2 and has attracted global leaders including Equinex, Digital Realty, and Australia's Airtrunk, CDC and NEXTDC, making it an ideal location to capitalise on high growth opportunities.
At a glance
- Melbourne accounts for 3% of regional operational capacity and 6% of Asia Pacific's total pipeline.3
- As at mid-2026, more than 50 operating data centres, including a mix of hyperscale, co-location, enterprise and edge data centres.
- 188 companies AI firms, Australia’s largest cluster.4
- The Victorian Government has invested an initial $5.5 million in the Sustainable Data Centre Action Plan.
Opportunities
- Melbourne is a hot spot for technology and data intensive industries.
- Demand is rising for ultra-high-density deployments, supporting AI, machine learning and advanced analytics.
- Rack densities are increasing from 30-40kW to over 80kW, to meet modern workloads, including:
- High-performance AI/ML inference workloads serving Asia-Pacific.
- Globally synchronised AI training clusters for efficient model development and scaling.
- Sovereign AI deployments requiring secure, regional hosting.
- Competition is growing for high-density-ready co-location space
- New facilities must integrate liquid cooling, upgraded power distribution, and advanced infrastructure to meet market expectations.
- Capitalise on undisputed premium co-location space, particularly in Melbourne's central and strategically connected areas.
- Melbourne provides direct links to key Asia-Pacific networks, providing high value connectivity to Indonesia, Singapore, and the broader Southeast Asian region.
- Victoria's stable regulatory environment and supportive government policies encourage long-term investment in critical digital infrastructure.
Why Victoria for data centre investment?
Coordinated land, infrastructure and connectivity
- Industrial‑zoned, affordable land suitable for large‑scale data centre facilities is readily available across metropolitan Melbourne and also in regional locations
- Victoria offers dense fibre optic networks, extensive mobile coverage, proximity to international subsea cable landing points, carrier‑neutral facilities, and internet exchanges.
Energy innovation and grid readiness
- Victoria's growing capacity in battery energy storage systems (BESS) provides opportunities for data centres to partner to support operational resilience and manage energy demand.
- Victoria’s wholesale prices are significantly lower than the national average.
- Victoria’s continued delivery of renewable energy and storage targets is increasing supply and placing downward pressure on electricity prices over time.
Sustainable water security and management
- Melbourne Water produces the largest amount of Class A recycled water in Australia – the highest grade of treated wastewater, which in many instances, is suitable for complex industrial cooling.
- Victoria is committed to working with data centre operators to preserve water.
Skilled and future-ready workforce
- With strong government‑industry training partnerships, the Victorian Government’s $8+ million Digital Jobs – AI Career Conversion program is upskilling workers to transition into AI roles and become digital technology specialists.
- Melbourne attracts students and researchers from all over the world. Victoria has the highest number of IT graduates and second highest number of engineering and related technologies graduates when compared with other Australian states and territories.
- Victoria accounts for roughly 30% of Australia’s national technology workforce.
Government support and incentives
Victorian Government
- Artificial Intelligence (AI) Mission Statement (2026)
- Sustainable Data Centre Action Plan ($5.5 million) – a blueprint to ensure water and energy impacts are responsibly managed, investors have certainty, and all Victorians can share in the benefits of a digital future.
- Development Facilitation Program – provides a streamlined planning process for eligible data centre projects.
- The Investment Coordinator-General breaks down regulatory silos and improves the investor experience.
- Melbourne to host Data Center World Australia and The AI Summit Australia in 2026
- Melbourne will also host the inaugural Data Centres Australia Excellence Awards
Australian Government
- Australia is a key member of multinational signals intelligence alliance known as the ‘Five Eyes’.
- Expectations of data centres and AI infrastructure developers
- National AI plan
Recent investments
Private projects
- Next DC will open its third data centre in Melbourne
- CDC opened its first Melbourne data centre campus in Brooklyn.
Sources
- DC Byte and Data Centres Australia, Australia’s Data Centre Forecast Report, April 2026
- Australian Trade and Investment Commission, Artificial intelligence and data centres
- Cushman & Wakefield, APAC Data Centre Update: H2 2025, February 2026
- National Artificial Intelligence Centre, Australia’s artificial intelligence ecosystem: growth and opportunities, June 2025
FAQs
Melbourne combines strong market demand with the infrastructure needed to support long-term growth.
Investors benefit from a large and expanding digital economy, access to industrial land, extensive fibre connectivity, growing renewable energy supply, a skilled workforce and direct connectivity to Asia-Pacific markets.
Melbourne is also Australia's fastest-growing city, supporting increasing demand for digital infrastructure.
Invest Victoria provides confidential, tailored support throughout your investment journey, including:
- Site selection assistance
- Connections to government agencies and utilities
- Guidance on planning and regulatory pathways
- Introductions to industry partners and research organisations
- Information on workforce, infrastructure and investment programs
Our team works with investors to help accelerate projects and navigate Victoria's investment environment.
Victoria is committed to enabling sustainable digital infrastructure through initiatives including the Sustainable Data Centre Action Plan.
Investors can access growing renewable energy generation, battery energy storage opportunities and Australia's largest supply of Class A recycled water for suitable industrial applications.
This supports more resilient, efficient and environmentally responsible operations.
