Data Centers in Sydney

Sydney – Gateway to the South Pacific Digital Economy

Executive Summary

Sydney serves as the primary interconnection hub for Oceania, providing the density required for low-latency access to the Australian market and Asian financial centers. It is the mandatory choice for enterprises that need proximity to every major global cloud provider and a highly resilient network ecosystem.

Sydney: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Sydney features a mature connectivity landscape with a provider count of over 65 carriers as of December 2025. This density ensures competitive pricing and diverse routing options across more than 60 localized facilities.

Direct Cloud On-Ramps: The market provides over 9 on-ramps, enabling low-latency access to 8 distinct cloud regions as of December 2025. Native on-ramps are available for AWS, Google Cloud (GCP), Microsoft Azure, Alibaba Cloud, Oracle Cloud, and IBM Cloud.

Internet Exchange Points (IXPs): Major peering occurs at the Equinix Internet Exchange and IX Australia, which facilitate high-volume local traffic exchange to reduce latency and transit costs.

Bare Metal: High-performance compute is readily available via global providers such as Hivelocity and Latitude.sh, supporting rapid deployment of single-tenant infrastructure as of December 2025.

Power Analysis

Average Cost Of Power: Industrial electricity prices range between AUD 0.14–0.19/kWh as of December 2025. This pricing reflects a grid mix that is approximately 64% fossil fuel based, with renewables accounting for 36% of generation. These costs are consistent with major metropolitan markets in the APAC region and represent a stable operational expense for large scale deployments.

Power Grid Reliability: The Sydney grid is well-engineered and resilient, supported by multiple high-voltage substations and redundant transmission lines. Reliability remains high in the primary data center corridors of the Central Business District, Alexandria, and Macquarie Park.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are strategically located near the Sydney CBD and the North Ryde technology cluster. This proximity is vital for the financial services and media sectors that require ultra-low latency for high-frequency trading and real-time content delivery.

Regional Market Reach: Sydney serves as the central hub for the Australian and New Zealand populations. It provides a reliable base for reaching over 30 million consumers with minimal lag, acting as a springboard for expansion into broader Oceania.

Tax Advantage For Data Centers: The market operates under a stable 10% GST framework without specialized sector-specific tax credits. This predictable environment allows for straightforward financial modeling and long-term capital planning for multinational firms.

Natural Disaster Risk

Sydney is classified with an overall Low (2.5/10) risk profile as of December 2025. While geological stability is high, facilities must account for specific regional environmental factors.

• Coastal Flood (6.2/10): Primarily a factor for facilities located in low-lying coastal zones as of December 2025.
• Drought (6.2/10): Impacts regional water availability but rarely affects urban industrial cooling as of December 2025.
• Tsunami (5.7/10): Regional risk managed through strictly enforced coastal building codes as of December 2025.
• River Flood (5.4/10): Relevant for specific floodplains; most modern facilities are sited on high ground as of December 2025.
• Tropical Cyclone (4.1/10): Sydney is south of the primary strike zones, but high-wind events occur occasionally as of December 2025.

Risk assessments for seismic activity and human-led conflict remain exceptionally low as of December 2025.