Data Centers in Sydney

Sydney – Australia's Primary Cloud & Connectivity Hub

Sydney stands as the undisputed digital gateway to Australia and a top-tier hub for the Asia-Pacific region. For businesses requiring low-latency connectivity to Australian users and resilient access to every major cloud provider, this market delivers the essential infrastructure to secure revenue and drive application performance. Its mature ecosystem of 64 data centers and over 65 network carriers provides a stable, competitive environment for mission-critical IT.

Sydney: At A Glance

Network & Connectivity Ecosystem

Sydney is the most connected city in Australia, serving as the primary landing point for critical subsea cables connecting the continent to Asia and North America. This creates an unparalleled environment for interconnection and high-performance networking.

Carrier Density & Carrier Neutrality: With over 65 unique network providers active in the market as of September 2025, Sydney offers extensive choice. Carrier-neutral facilities provide redundant access to global and domestic backbones, ensuring competitive pricing and high uptime.

Direct Cloud On-Ramps: Sydney provides direct, low-latency connections to 8 distinct cloud availability regions. As of September 2025, dedicated on-ramps are available for Alibaba Cloud, AWS, Google Cloud (GCP), IBM Cloud, Microsoft Azure, and Oracle Cloud, enabling secure and reliable hybrid cloud architectures.

Internet Exchange Points (IXPs): The market is served by major peering points, including NEXTDC's and Equinix's IX platforms, which facilitate efficient traffic exchange between networks. This lowers transit costs and improves latency for Australian end-users.

Bare Metal: Bare metal cloud solutions are readily available from multiple providers. Global suppliers like Hivelocity and phoenixNAP offer dedicated servers, providing an alternative to virtualized infrastructure for performance-sensitive workloads.

Power Analysis

Sydney's power infrastructure is well-established, though costs reflect the country's energy landscape.

Average Cost Of Power: Industrial electricity rates typically range from AUD 0.14 to AUD 0.19 per kWh, as of September 2025. This pricing can impact total operating costs for high-density deployments.

Power Grid Reliability: The power grid supporting Sydney's primary data center corridors is highly reliable and well-engineered. Facilities in this market feature redundant connections to multiple substations, ensuring stable operations for critical infrastructure.

Market Access, Business & Tax Climate

Sydney's strategic importance extends beyond its technical capabilities, offering significant commercial advantages.

Proximity To Key Business Districts: Data centers are located with strategic access to the Sydney Central Business District (CBD) and key commercial zones in North Ryde and Macquarie Park. This proximity serves Australia's largest finance, media, and technology industries.

Regional Market Reach: As Australia's largest economic hub, deploying in Sydney provides low-latency access to the country's most populous region. It also serves as an effective digital hub for reaching all of Oceania.

Tax Advantage For Data Centers: Australia offers a stable and predictable tax environment. While no direct financial incentives are targeted specifically at data center construction or operation, the country's clear regulatory framework provides a secure climate for long-term investment.

Natural Disaster Risk

Sydney has a low overall risk profile for natural disasters, with an INFORM Risk score of 2.5 out of 10 as of September 2025. The primary environmental hazards are climate and weather-related rather than seismic.

Key risks to consider include:

• Coastal Flood: 6.2/10
• Drought: 6.2/10
• River Flood: 5.4/10
• Tsunami: 5.7/10
• Tropical Cyclone: 4.1/10
• Earthquake: 0.1/10

While the risk from any single event is moderate, data centers in the region are engineered to mitigate impacts from flooding and severe storms.