Melbourne Gains Ground in Australia’s Data Centre Race
Australia’s data centre boom is turning into a real contest between Melbourne and Sydney. Sydney is still the biggest established market, but Melbourne is quickly becoming the main growth hotspot, reportedly taking close to 75% of new capacity being added. Faster approvals in Victoria, fewer grid bottlenecks, and easier access to land and power are all pushing more projects south.
Sydney isn’t backing down. It still hosts some of the largest builds, including a $3.1b hyperscale site in Marsden Park, and NSW is trying to speed things up by fast-tracking 15 major projects worth $51.9b through the new Investment Delivery Authority. At the same time, the Federal Government is floating a “triple lock” plan to ensure data centres add renewables, pay their share of network costs, and help manage peak demand. A NSW inquiry due in September 2026 could be a turning point.
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