Data Centers in Hobart
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Hobart – Australia's Southern Digital Gateway
Executive Summary
Hobart provides a strategic data center presence for serving Tasmania's digital economy and government services. For organizations needing a disaster recovery site geographically isolated from mainland Australian risks, Hobart offers a compelling option. This configuration ensures uptime and low-latency performance for local users and critical applications.
Hobart: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong for a regional capital, but not a primary international hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access to major clouds requires network extension to Melbourne. |
| Power Cost | AUD $0.14–$0.19/kWh – as of September 2025 | Competitive pricing helps manage ongoing operational expenses. |
| Disaster Risk | Low (2.5/10) – as of September 2025 | Low overall risk profile compared to other regions. |
| Tax Incentives | No | No specific data center incentives are currently offered by the state. |
| Sales Tax | 10% GST – as of September 2025 | Standard national Goods and Services Tax applies. |
Network & Connectivity Ecosystem
Hobart's connectivity ecosystem is tailored to serve the Tasmanian market effectively, with reliable links to mainland Australia. The market features 3 colocation data centers, as of September 2025.
Carrier Density & Carrier Neutrality: The market provides access to a growing number of local and national carriers. Carrier-neutral facilities offer the flexibility to connect with multiple providers, creating a competitive environment for network services.
Direct Cloud On-Ramps: There are no direct cloud on-ramps located within Hobart, as of September 2025. Businesses connect to the 0 cloud regions available in Australia by establishing private network interconnects or wavelength services to major hubs in Melbourne.
Internet Exchange Points (IXPs): The primary exchange is TasIX, which enables local peering between networks. This keeps Tasmanian internet traffic within the state, reducing latency for local users and services.
Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive workloads. Providers like Hivelocity can serve the Australian market, including deployments in or near the region.
Power Analysis
Average Cost Of Power: Industrial power rates in the region range from AUD $0.14–$0.19/kWh, as of September 2025. This competitive pricing structure provides a tangible advantage for managing the high operational costs associated with dense computing environments.
Power Grid Reliability: Tasmania's power grid is reliable, benefiting from a high percentage of renewable hydro-electric generation. Data centers in Hobart are situated in areas with well-engineered power infrastructure to support critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Hobart provide low-latency connectivity to the city's central business district, state government agencies, and research institutions. This proximity is critical for public sector services, scientific computing, and the local technology industry.
Regional Market Reach: The Hobart market is positioned to serve the entire state of Tasmania. It acts as an in-market digital infrastructure hub, reducing reliance on data centers on the Australian mainland for serving the island's population and businesses.
Tax Advantage For Data Centers: Australia's federal R&D tax incentive may apply to eligible development activities, but no state-level tax abatement programs exist specifically for data centers. The market's financial advantage stems from its competitive operational costs, not direct tax breaks.
Natural Disaster Risk
Hobart has a low overall risk profile for natural disasters, with an INFORM Risk score of 2.5 out of 10, as of September 2025. While the aggregate risk is low, the location's specific geography presents several hazards that require consideration in infrastructure design and business continuity planning.
The primary environmental risks for the region include:
- Coastal Flood
- Drought
- Tsunami
- River Flood
Risks from tropical cyclones and earthquakes are rated as significantly lower for this area.
