Data Centers in Wollongong
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Wollongong – Resilient Infrastructure Near Sydney
Wollongong is an emerging edge data center market providing a crucial disaster recovery and secondary location for workloads serving the Sydney metropolitan area. Its strategic location offers a balance of lower operational risk and cost while maintaining low-latency connectivity to Australia's primary economic hub. This market is ideal for enterprises requiring resilient infrastructure for business continuity, content delivery, and distributed applications.
Wollongong: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity, primarily serving as a secondary market to nearby Sydney. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct access is via Sydney, enabling private connections to all major clouds. |
| Power Cost | AUD 0.14–0.19/kWh | Sourced from the national grid, with costs reflecting wholesale quarterly averages. |
| Disaster Risk | Low (2.5/10) – as of September 2025 | Minimal exposure to significant natural hazards, enhancing its value for DR. |
| Tax Incentives | No | No specific data center incentives are currently offered in this region. |
| Sales Tax | 10% GST – as of September 2025 | A national Goods and Services Tax applies to all services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As an emerging market, Wollongong has a focused carrier presence, with over 3 providers available in the primary colocation facility as of September 2025. Carrier neutrality ensures competitive connectivity options for tenants.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Wollongong as of September 2025. All major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, are accessible via private network extensions to data centers in Sydney.
Internet Exchange Points (IXPs): Public peering is handled through IXPs located in Sydney. Most network interconnection in Wollongong occurs through private peering or transit arrangements with national carriers.
Bare Metal: Bare metal server availability is present, offering dedicated compute resources for performance-sensitive applications. Providers like Hivelocity and phoenixNAP can service the region from nearby hubs.
Power Analysis
Average Cost Of Power: Industrial electricity pricing averages between AUD 0.14–0.19/kWh as of September 2025. These stable energy costs provide a predictable operational expense environment for high-density deployments.
Power Grid Reliability: The power infrastructure supporting Wollongong's data center facilities is well-engineered, drawing from the highly reliable New South Wales transmission grid. This ensures high levels of uptime suitable for critical enterprise workloads.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Wollongong's data centers serve local enterprises and act as a key secondary site for Sydney-based businesses, located approximately 80 km south. This proximity allows for synchronous data replication and effective disaster recovery strategies.
Regional Market Reach: The market effectively serves the Illawarra region and provides a valuable alternative to the dense and more expensive Sydney market. It supports applications requiring low latency to Southern New South Wales.
Tax Advantage For Data Centers: Australia does not offer specific tax incentives for data center construction or operation at the federal level. The primary financial advantage comes from potentially lower real estate and operational costs compared to primary markets.
Natural Disaster Risk
Wollongong has a low overall natural disaster risk profile, with an INFORM Risk score of 2.5 out of 10 as of September 2025. This rating makes it an excellent choice for organizations prioritizing infrastructure resilience and uptime.
The most notable environmental risks for the region include:
- Coastal Flood: 6.2/10
- Drought: 6.2/10
- River Flood: 5.4/10
- Tsunami: 5.7/10
- Tropical Cyclone: 4.1/10
While coastal and flood risks are present, modern data center construction standards and site selection mitigate these factors effectively. The earthquake risk is negligible.