Data Centers in Adelaide

Adelaide – Reliable Infrastructure for Edge Computing

Adelaide is an emerging edge market offering a stable, low-risk environment for workloads serving South Australia. Its strong connectivity, reliable power, and low natural disaster risk make it a prime location for disaster recovery and secondary deployments supporting primary infrastructure in Sydney or Melbourne. This market ensures high-uptime operations for businesses targeting the region.

Adelaide: At A Glance

Network & Connectivity Ecosystem

Adelaide's connectivity is robust, providing solid performance for businesses operating in South Australia. The market features 19 data centers managed by 4 distinct providers, ensuring a competitive environment for colocation and network services as of September 2025.

Carrier Density & Carrier Neutrality: With over 4 providers, the market offers access to a range of national and local carriers. Carrier-neutral facilities are the standard, allowing customers to interconnect with their preferred network providers without restriction.

Direct Cloud On-Ramps: As of September 2025, there are no public cloud on-ramps located directly within Adelaide. Businesses connect to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure via dedicated private network links to major interconnection hubs in Melbourne or Sydney.

Internet Exchange Points (IXPs): The primary internet exchange is SA-IX, operated by the Internet Association of Australia. It facilitates local traffic peering, reducing latency for South Australian users and improving overall network efficiency.

Bare Metal: Bare metal server options are available in Adelaide, providing dedicated compute resources for performance-sensitive applications. Providers like phoenixNAP and Hivelocity offer solutions in the Australian market.

Power Analysis

Adelaide provides a stable and increasingly green power grid suitable for critical data center operations. The infrastructure is well-maintained, supporting the uptime requirements of modern IT workloads.

Average Cost Of Power: Industrial electricity rates typically range from AUD 0.14 to AUD 0.19 per kWh as of September 2025. These competitive costs, combined with a grid that incorporates 36% renewables, offer a good balance of price and sustainability.

Power Grid Reliability: The power grid supporting Adelaide's primary data center zones is well-engineered and reliable. It is supplied by multiple substations, ensuring redundant power paths are available to facilities to support their service level agreements.

Market Access, Business & Tax Climate

Adelaide provides a strategic location for reaching markets in South Australia and serves as an effective disaster recovery site for operations in eastern Australia.

Proximity To Key Business Districts: Data centers are located with convenient access to Adelaide's central business district and technology parks. This proximity supports low-latency requirements for the finance, defense, and research sectors concentrated in the area.

Regional Market Reach: Adelaide is perfectly positioned to serve the entire South Australian population. It also functions as a key network aggregation point for traffic originating from Western Australia and the Northern Territory.

Tax Advantage For Data Centers: Australia offers a stable and predictable tax environment for businesses. While no specific data center tax incentives exist in Adelaide, the federal government's general investment allowances can benefit capital-intensive projects.

Natural Disaster Risk

Adelaide maintains a very low-risk profile for natural disasters, with an overall INFORM Risk score of 2.5 out of 10 as of September 2025. This makes it one of the safer locations in Australia for building and operating critical infrastructure.

The most notable environmental risks are primarily related to weather patterns rather than catastrophic events. Key hazards include:

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

The risks from earthquakes and other major natural perils are negligible, contributing to the market's reputation for physical security and operational resilience.