02 STRUCTURAL & EMERGING DEMAND DRIVERS
CUSHMAN & WAKEFIELD | 13
AUSTRALIA'S OCCUPIER MARKET OUTLOOK
DATA CENTRES: A NEW INDUSTRIAL DEMAND DRIVER Australia's data centre pipeline is scaling rapidly. Experience from more mature US markets suggests the industrial demand generated by the ecosystem supporting these facilities could accelerate as the sector develops.
Australia has approximately 330 MW of data centre capacity under construction and a further 2.9 GW planned. Almost 17 GW is at an earlier stage of development. The direct impact on industrial property is already becoming evident, with hyperscale data centre operators acquiring significant tranches of industrial land. However, the construction and ongoing operation of data centres require significant suppliers, contractors, equipment storage and distribution capacity. Ultimately, this will add a new layer of warehouse demand to the sector and the market is already benefiting. In Sydney for 2026, more than 100,000 sqm has been leased to such businesses, and includes commitments to AG Coombs, Parratech and Tate Global.
WHAT CAN THE US MARKET TELL US?
WHAT DOES THIS MEAN FOR AUSTRALIA? Experience in more mature data centre markets
Data centre related industrial leasing, gross take-up (000 sqm)*
demonstrates the potential for broader industrial demand across suppliers, contractors, equipment storage and logistics operations. Australia remains at a much earlier stage of development and the scale and timing of this demand is likely to vary by market.
1,254
+44% year-on-year increase in 2025
871
799
743
Potential industrial demand indicated by mature-market experience (million sqm)
2022
2023
2024
2025
3.0
10.4% of US industrial leasing, 2022 to 2025 (14.4% in 2025)
3.68m sqm of data centre related leasing, 2022 to 2025
1.25m sqm data centre related leasing volume in 2025
2.0
1.0
0.0
Sydney Melbourne Perth Canberra Other
339,000 sqm of industrial leasing associated with each GW of data centre development*
Under construction
Planned
Early stage
*Phoenix, Virginia, Dallas, Atlanta, Austin-San Antonio, Chicago. Applying the relationship observed across six US markets. Source: Cushman & Wakefield Research
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