DC Two ready to capitalise on Australia’s $3.8bn data centre boom

It’s been a massive 2021 for early entrance data centre innovator, DC Two. And the Aussie firm says demand for digital infrastructure has never been stronger, with the Australian data centre market expected to grow to $3.8 billion by 2025.

And DC Two is poised for Tier III accreditation at its hero data centre at Bibra Lake – putting the business in a strong position when competing for large-scale enterprise contracts.

“We are manoeuvring into a position to capitalise on this growing domestic market, and achieving Tier III design accreditation for Bibra Lake will completely transform our business,” the company said.

“This certification will confirm Bibra Lake has been designed to meet one of the highest standards for functionality, allow us to transition resources from development into commercial activities, and enable the company to secure large enterprise customers who require Tier III certification.

“DC Two (ASX:DC2) will become the only provider in Western Australia with their own Tier III accredited data centre and ISO 27001 ISMS accredited cloud platform.”

Enough enquiries to fill a data centre

This year the company has consistently increased quarterly recurring revenue in conjunction with bringing two data centres online.

“We have expanded the sales team, secured a number of new customers and developed additional regional data centre projects,” DC2 said.

“Our regional data centres were initially being worked on in the background to service a smaller customer base and develop the potential market opportunity with lesser capital needs.

“As global markets changed during this year, the company became flooded with enquiries and opportunities. Particularly in the digital currency mining space.

“An immense amount of work has gone into capturing these opportunities which resulted in a number of significant contract wins.”

The concept behind DC2’s modular data centres. Pic: DC Two.

Demand is only going to grow in 2022

The demand for digital infrastructure has never been stronger, with COVID-19 pushing more users online and increasing our reliance on digital tools for remote working, remote learning, video conferencing and online shopping.

“This has led to a surge in demand for Australian data centre capacity and we expect this to continue for the foreseeable future, providing an ideal backdrop for DC Two to grow revenue,” the company said.

“We aim to grow our regional data centre capacity significantly in 2022 and continue to grow our sales team to increase market share and contracted utilisation.”

The company aims to scale the business to increase recurring revenue, and grow and retain its customer base – which consists of long-term contracts.

Not just hot wind: Green powered data centres add essential eco-cred

Data centres are expected consume an estimated 1/5 of the world’s energy by 2025 – so it’s no surprise that ESG credentials are becoming front and centre for all companies operating in the sector

DC Two has a highly unique offering here, with its transportable regional data centres being deployed ‘behind the meter’ at renewable power generation sites.

“We are now utilising wind, solar and other renewable power sources to offer a ‘green powered’ service to Australian customers seeking more eco-credentials across their business,” DC2 said.

This article was developed in collaboration with DC Two Limited, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.