Emerging design trends in data centre construction

How innovation and sustainability are shaping design trends across Australia and New Zealand’s Data Centre landscape

Data centre construction in Australia and New Zealand (ANZ) is evolving in response to the increasing demand for AI, cloud computing, and data storage. For contractors, understanding these emerging built-form design trends is critical to delivering high performance facilities that meet both current demands and the future expectation. Staying aligned with regulatory standards and stringent compliance requirements, sustainability, security, and operational resilience, is essential to ensure long-term success. Here are the top design trends shaping the construction of data centres in ANZ.

Market Growth Driving Construction Innovation

The ANZ data centre construction market is experiencing unprecedented growth. The industry was valued at USD 2,344.55 million in 2024 and is projected to reach USD 4,773.86 million by 2032, representing a compound annual growth rate (CAGR) of 8.66%. This expansion is driven by cloud adoption, AI infrastructure demands, and IoT integration. Australia dominates with 78% market share, whilst New Zealand is emerging as a strategic regional hub with 22% market share, particularly for renewable energy integration. This growth trajectory is accelerating investment in advanced design methodologies and prefabricated construction approaches to deliver facilities faster and more cost-effectively.

Modular and prefabricated construction

The shift towards modular and prefabricated data centres is gaining momentum due to the speed and flexibility they offer. These designs enable faster construction timelines, with units operational in months rather than one to two years for traditional builds. They maintain strict quality controls during off-site construction whilst enabling easy expansion for future regulatory changes.

Cost savings of up to 30% can be achieved through prefabricated approaches. Incorporating compliance checks during the design phase ensures prefabricated elements meet required standards for energy use, safety, and environmental performance.

Sustainability and energy efficiency

Data centres in ANZ are increasingly integrating renewable energy sources such as solar, wind, and geothermal to align with local sustainability regulations. These efforts reduce operational costs whilst meeting rigorous requirements from frameworks like NABERS (National Australian Built Environment Rating System). Prefabricated data centre facilities equipped with advanced cooling systems achieve Power Usage Effectiveness (PUE) ratings below 1.5, significantly improving energy efficiency compared to traditional designs. Contractors must ensure designs accommodate renewable systems from the outset, considering local energy policies and carbon neutrality targets.

AI Workload Requirements and Infrastructure Impact

Enterprise AI and machine learning applications are driving substantial increases in power density requirements. Industry projections forecast edge computing power footprints will grow at a 40% compound annual rate from 1 GW in 2019 to 40 GW by 2028. This explosive demand requires data centres to be fundamentally redesigned with higher computational capacity and advanced thermal management. Traditional cooling infrastructure is insufficient for these workloads, necessitating direct-to-chip liquid cooling systems and integrated heat management technologies that must be engineered from the design phase onwards. Contractors must collaborate with specialists to integrate these advanced systems during construction.

High-density and vertical design

To optimise land use, especially in densely populated urban centres, data centres are trending towards high-density, multi-storey structures. Vertical designs not only save space but also improve cooling efficiency by utilising advanced air circulation systems across floors​. Given the structural and operational complexity of these builds, adherence to local building codes, including those related to fire safety and load-bearing capacity, becomes paramount. Contractors must integrate compliance considerations into the design to ensure these high-density centres can operate safely and efficiently.

Edge computing and regional facilities

Edge computing is being embraced across ANZ to reduce latency and enhance data processing capabilities, especially in sectors such as agriculture, mining, and healthcare​. As edge data centres move closer to end-users, they often fall under different local jurisdictions with unique regulatory requirements. Building contractors must ensure that these facilities are not only optimised for speed and performance but also meet local zoning, environmental, and data protection regulations. Designing with compliance in mind from the start will help avoid costly retrofits or operational delays later.

Advanced cooling systems and water immersion

With the rise of AI and machine learning workloads, advanced cooling systems, such as liquid cooling, are becoming essential to manage heat in data centres. These systems require precise integration into the overall design to maintain energy efficiency and comply with local environmental regulations. In particular, cooling systems must meet both efficiency benchmarks and safety standards related to handling liquids in close proximity to sensitive electronic equipment. Building contractors should collaborate closely with engineers to ensure the installation adheres to both operational needs and regulatory requirements.

Adapting legacy systems to AI workloads

Legacy data centres often lack the capacity to handle the high-density computing demands required by AI and machine learning applications. Retrofitting these centres to accommodate higher power densities and advanced cooling systems will be essential. Contractors will need to upgrade power infrastructure, reinforce floors, and enhance ventilation systems to support the intense computational loads associated with modern AI​.

Security by design

As data centres handle increasingly sensitive data, physical and cybersecurity are integral to their design. Security by design involves incorporating features such as secure access points, biometric systems, and robust physical barriers during construction​. Given the strict data protection laws in ANZ, such as those outlined in Australia’s Privacy Act 1988 and New Zealand’s Privacy Act 2020, contractors must ensure that all security features comply with regulatory requirements to protect against both physical and cyber threats.

Seismic and environmental resilience

In regions prone to natural disasters, such as earthquakes in New Zealand, data centres must be designed with resilience in mind. This includes integrating seismic isolation technology and flood-resistant designs where applicable. Meeting local building codes and disaster-preparedness regulations is essential to ensure that the facility can withstand environmental challenges without operational disruption. Contractors need to incorporate these considerations into the design to ensure that the data centre is both structurally sound and compliant with relevant safety standards.

Conclusion

As data centres in Australia and New Zealand continue to grow in complexity and scale, contractors must stay attuned to the evolving design trends shaping the industry. By integrating modular construction, renewable energy solutions, advanced cooling, and resilient infrastructure, contractors can build data centres that meet both current technological demands and stringent regulatory requirements. Staying compliant with building codes, standards and data centre operator requirements from the outset will be critical in delivering high-performance, future-ready facilities.