Press Release

Sydney, Australia, February 27, 2012 View All Press Releases

Gartner Expects Number of Australian Data Centers to Peak in 2012

Latest Data Center Trends Will Be Addressed at Gartner's Infrastructure, Operations and Data Center Summit, 5-6 March in Sydney

The total number of data centers in Australia is expected to peak at 49,577 in 2012, according to the latest data center market forecast from Gartner. By 2015, this number is expected to decline to 45,545.

“Australian businesses are focused on improving data center economics, coupled with agility and management,” said Phil Sargeant, research vice president at Gartner. “To achieve this, many are considering virtualisation-led consolidation to migrate three to five physical sites into one to two sites. This may also involve new data center build-outs in many cases.”

Of the total number of data centers in Australia in 2012, only 10 are classed as large data centers, defined by Gartner as having at least 1,000 racks of equipment and/or at least 20,000 square feet, while 90 are enterprise data centers with at least 250 racks of equipment and/or at least 5,000 square feet. The vast majority are classed as single deployments or small racks in ‘computer rooms’ in smaller companies.

Australian organizations are forecast to spend almost A$2 billion on data center hardware in 2012, up from A$1.83 billion in 2011.  

A focus group of 15 Australian data center decision makers in 2011 said data center modernisation, virtualisation-led consolidation, evaluation of new alternatives for traditional data center outsourcing and disaster recovery are the key priorities attracting investment in the coming years.

“Australian business leaders we spoke to suggested that overall data center spending will remain constrained as businesses expect reduced data center budgets and a greater return on data center investment, given ongoing cost and performance improvement in these technologies,” said Naveen Mishra, research vice president for Gartner. “Increasingly leaders and CFOs expect that the data center should drive cost savings, which can then be used to fund new initiatives.”

The focus group confirmed that there is increasing dissatisfaction with the existing data center outsourcing model in Australia because of high cost structures, support issues and vendor lock-in. Australian organizations in cities such as Sydney, Melbourne and Brisbane are beginning to reconsider their decision of continued data center outsourcing and a few are contemplating starting a new captive data center build-out due to dissatisfaction, especially where there is a change to the existing model of outsourcing or where organizations are evaluating the cloud.

The Gartner focus group was held on-site during the Gartner Infrastructure, Operations and Data Center Summit on 15 March, 2011. Based on a target list of 100 participants, 15 were selected representing different industry segments, such as government, financial services, education, insurance, transportation, entertainment and manufacturing.

Additional information is available in the special report "User Survey Analysis: 15 Australian Data Center Managers Discuss Their Key Priorities for 2012" which is available on Gartner's website at

More detailed analysis on the key issues facing the data center market will be discussed at the Gartner Infrastructure, Operations & Data Center Summit, 5-6 March 2012 in Sydney. Members of the media wishing to register can contact Susan Moore, Gartner PR at For further information on the summit, please visit 

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