Data Centers in Adelaide

Adelaide – Stable & Connected Southern Gateway

Executive Summary

Adelaide is an excellent market for enterprises requiring a highly stable, lower-risk Australian location for disaster recovery and secondary deployments. It provides a resilient alternative to the primary eastern hubs, ensuring business continuity and reliable performance for serving South Australia and central regions. Its strong infrastructure and low natural disaster risk profile protect critical operations and revenue streams.

Adelaide: At A Glance

Network & Connectivity Ecosystem

Adelaide’s connectivity ecosystem is robust and growing, providing reliable access for digital infrastructure. The market offers a dependable alternative to the larger hubs of Sydney and Melbourne.

Carrier Density & Carrier Neutrality: Adelaide provides access to over 4 unique network providers across its 19 colocation facilities, as of September 2025. The presence of carrier-neutral data centers ensures competitive options for local access, national backhaul, and international transit.

Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Adelaide data centers, as of September 2025. High-speed, low-latency private network connections are readily available to establish direct access to cloud provider regions in Melbourne and Sydney.

Internet Exchange Points (IXPs): The primary exchange is SA-IX, operated by IX Australia. Its presence is critical for keeping local traffic within the state, which reduces latency and improves performance for South Australian end-users.

Bare Metal: Bare metal server options are available through providers with a presence in the broader Australian market. Companies like Hivelocity and phoenixNAP can service deployments in the region, offering dedicated compute for performance-intensive workloads.

Power Analysis

Adelaide presents a reliable and increasingly green power profile suitable for mission-critical facilities.

Average Cost Of Power: Industrial power costs range from AUD $0.14–$0.19/kWh, as of September 2025. This competitive pricing helps organizations manage the significant operational expenses associated with high-density compute.

Power Grid Reliability: The power grid supporting Adelaide's commercial and industrial zones is well-engineered and stable. The region benefits from a significant and growing mix of renewable energy sources, which account for over a third of its electricity generation, enhancing grid diversity.

Market Access, Business & Tax Climate

Adelaide provides a strategic location with a stable business environment and access to key regional markets.

Proximity To Key Business Districts: Data centers are located to effectively serve Adelaide's central business district, along with key technology and defense industry parks. This proximity ensures low-latency performance for government, finance, and research sectors.

Regional Market Reach: Adelaide is an ideal digital gateway to serve South Australia, the Northern Territory, and Western Australia. Deploying here can offer latency advantages over east-coast hubs for reaching users and operations in central and western parts of the country.

Tax Advantage For Data Centers: While no direct tax incentives target data center development, businesses benefit from Australia's stable and predictable federal tax system. The absence of complex local tax schemes simplifies financial planning for infrastructure investments.

Natural Disaster Risk

Adelaide maintains a low overall risk profile for natural disasters, making it a secure location for critical infrastructure.

The region has an INFORM Risk score of 2.5 out of 10, classifying it as a low-risk environment as of September 2025. While the overall risk is minimal, the primary natural hazards to consider are weather-related. The highest individual risk factors for the area include drought, coastal flooding, tsunami, and river flooding. The risk of earthquakes and tropical cyclones is very low.