Data Centers in Sydney

Sydney – Australia's Cloud & Connectivity Hub

Executive Summary

Sydney is Australia's primary data center market and the country's most critical gateway for international connectivity. With exceptional carrier density and direct access to all major cloud providers, it is the premier choice for enterprises requiring low-latency performance for the Australian market. This rich ecosystem directly supports high-availability applications and secures digital supply chains across the Asia-Pacific region.

Sydney: At A Glance

Network & Connectivity Ecosystem

Sydney’s network infrastructure is the most developed in Australia, serving as the digital front door for the continent. Its concentration of subsea cable landing stations and carrier-neutral facilities makes it an essential hub for any business operating in the region.

Carrier Density & Carrier Neutrality: With over 65 carriers present, as of September 2025, Sydney offers a highly competitive and resilient connectivity marketplace. The market is dominated by carrier-neutral operators, ensuring customers have extensive choice and control over their network services.

Direct Cloud On-Ramps: The market features over 9 dedicated cloud on-ramps providing direct, private access to 8 distinct cloud regions, as of September 2025. Available providers include AWS, Google Cloud (GCP), Microsoft Azure, Alibaba Cloud, IBM Cloud, and Oracle Cloud, enabling secure, high-performance hybrid cloud architectures.

Internet Exchange Points (IXPs): Major IXPs, including those operated by Equinix and NEXTDC, are central to the ecosystem. These exchanges facilitate efficient, low-latency traffic peering between networks, reducing costs and improving application performance.

Bare Metal: Bare metal server availability is excellent, with providers offering dedicated compute for performance-sensitive workloads. Options from global suppliers like Hivelocity and phoenixNAP are readily available in the market.

Power Analysis

Average Cost Of Power: Industrial power costs in the Sydney market range from AUD $0.14 to $0.19/kWh, as of September 2025. This pricing is competitive for a major global city and allows for predictable operational expense management, even for dense compute deployments.

Power Grid Reliability: The power grid serving Sydney's key data center zones is well-engineered and reliable. Facilities in primary corridors like Macquarie Park typically have access to redundant power feeds from multiple substations, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Sydney are strategically located near the Central Business District (CBD) and major commercial hubs. This proximity provides low-latency connectivity crucial for the finance, media, and enterprise sectors headquartered in the city.

Regional Market Reach: As the economic capital of Australia, Sydney provides access to the country's largest population center. Its network capabilities make it the ideal hub for serving end-users across Australia and New Zealand, as well as a key peering point for traffic between North America and Asia.

Tax Advantage For Data Centers: While Australia does not offer specific tax incentives for data center construction or operation, its stable and transparent tax system is a key benefit. The 10% Goods and Services Tax (GST) provides a straightforward framework that simplifies financial planning and compliance for international businesses.

Natural Disaster Risk

Overall, Sydney has a low natural disaster risk profile, with an INFORM Risk score of 2.5 out of 10, as of September 2025. The risk landscape is defined by climate and weather events rather than seismic activity.

Key natural hazards to consider include:

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

Earthquake risk is negligible (0.1/10), making the region geologically stable for critical infrastructure.