Datacentre vendor, Global Switch, has started the construction of the first stage of its second Australian datacentre.
The construction of the Sydney-based datacentre is worth $300 million, according to Global Switch.
The new 24,000 square metre datacentre will be called Sydney East and will be built on Global Switch's campus next to its existing Sydney West datacentre.
Global Switch executive chairman, John Corcoran, said it decided to expand on its Australian datacentre as the country is an "extremely attractive investment destination" given the growth in domestic datacentre capacity demand and the geopolitical benefits it offers to multinational companies.
"With the Asia-Pacific region at the centre of global growth, Australia is in a unique position as a safe and reliable location from which to service that market," he said.
He added that the company is responding to datacentre demand from financial institutions, governments, telecommunications carriers and managed services providers.
Global Switch Sydney managing director, Damon Reid, claimed the increasing trend for corporations to outsource their IT activities as their datacentre needs expand and the huge growth in Cloud computing are driving significant growth in datacentre services.
"Sydney East aims to provide our customers with a network dense, low latency datacentre solution to meet their growing needs and it reinforces Sydney's position as a strategic telecommunications hub of global importance," Reid said.
The first stage, which constitutes about a third of the total project, is expected to be completed by the first quarter of 2014.