Data Centers in Adelaide

Adelaide – Reliable and Cost-Effective Digital Gateway

Executive Summary

Adelaide is a strategic data center market for organizations requiring a highly stable, lower-risk Australian footprint. It serves as an excellent disaster recovery location for primary deployments in Sydney or Melbourne, providing geographic separation while maintaining strong national connectivity. The market delivers reliable infrastructure and a favorable risk profile, ensuring uptime for critical applications serving South Australia and national audiences.

Adelaide: At A Glance

Network & Connectivity Ecosystem

Adelaide's connectivity is robust and reliable, making it a viable secondary market and disaster recovery site. The ecosystem provides sufficient capacity for most enterprise needs.

Carrier Density & Carrier Neutrality: Adelaide hosts 19 data centers operated by 4 providers, with access to dozens of national and local carriers as of September 2025. Key facilities operate on a carrier-neutral basis, offering diverse network options.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Adelaide as of September 2025. Businesses connect to cloud provider regions in Melbourne and Sydney via high-speed private network interconnects, such as dedicated fiber or carrier-provided wave services.

Internet Exchange Points (IXPs): The primary peering point is SA-IX, operated by IX Australia. This IXP facilitates efficient, low-latency traffic exchange between local internet service providers, content providers, and enterprises.

Bare Metal: Bare metal server options are available from national providers who have a presence in Adelaide data centers. Providers like Hivelocity and OVHcloud offer dedicated compute solutions that can be deployed in the region.

Power Analysis

Average Cost Of Power: Industrial power rates in Adelaide average between AUD 0.14 and AUD 0.19 per kWh as of September 2025. The pricing reflects a grid powered by a mix of 64% fossil fuels and 36% renewables. These competitive costs make large-scale deployments financially feasible.

Power Grid Reliability: The power grid supporting Adelaide's main data center zones is well-engineered and stable. Connection to the National Electricity Market (NEM) provides redundancy, and modern facilities are supported by multi-substation feeds and on-site backup generation.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Adelaide's data centers are strategically located to serve its central business district, along with key commercial and industrial zones. This proximity provides low-latency connectivity for the region's prominent defense, government, healthcare, and manufacturing sectors.

Regional Market Reach: A deployment in Adelaide provides excellent coverage for the state of South Australia. It also functions as a valuable disaster recovery site for operations based in the more populous eastern states, offering geographic diversity against regional outages or disasters.

Tax Advantage For Data Centers: The Australian government does not currently offer specific tax incentives for the development or operation of data centers. Businesses operate under the standard federal corporate tax structure, ensuring a predictable financial environment without special provisions.

Natural Disaster Risk

Adelaide maintains a very low overall natural disaster risk profile, with an INFORM Risk score of 2.5 out of 10 as of September 2025. This stability is a key advantage for critical infrastructure hosting and disaster recovery planning.

While the overall threat level is minimal, the most significant environmental risks for the region include:

• Coastal Flood: 6.2/10
• Drought: 6.2/10
• River Flood: 5.4/10
• Tsunami: 5.7/10
• Tropical Cyclone: 4.1/10

The risk of earthquakes is exceptionally low (0.1/10).