Sydney is Australia's largest data centre market by operational capacity, pipeline and number of operators. Venture Insights puts Sydney's share of national deployable capacity at 58%. DC Byte estimates about 0.8 GW of operational capacity in 2025 and forecasts 2.0 GW by 2030.
This page covers the whole metro market: inner-city and northern facilities, operators, power, policy and connectivity. The Western Sydney precincts where most new hyperscale capacity is being planned (Eastern Creek, Kemps Creek, Horsley Park, Marsden Park) have their own page: Western Sydney data centres.
Sydney Data Centre Market
| Measure | Figure | Source |
|---|---|---|
| Operational capacity, 2025 | ~0.8 GW | DC Byte |
| Forecast operational capacity, 2030 | ~2.0 GW | DC Byte |
| Sydney pipeline (all stages) | 11.4 GW | DC Byte: 8.6 GW early stage, 1.9 GW committed, 0.1 GW under construction |
| Share of national deployable capacity | 58% | Venture Insights, Mar 2026 |
| NSW share of NEM data centre electricity use | ~66% | AEMO 2026 ESOO |
| NSW data centres in the SSD pipeline | 19 projects, $50.3 billion | NSW Government, Aug 2026 |
Why is Sydney Australia's largest data centre market?
Sydney has the largest concentration of enterprise, financial services and government customers. It is the primary Australian region for every major cloud provider, and it is where most international subsea cables land on the east coast. Once cloud regions and network interconnection points are established in one city, new capacity tends to follow them, because customers want low latency to both.
The limiting factor is changing. Ten years ago it was land. Now it is transmission capacity and water (see below).
Major Data Centre Projects
Projects across the Sydney metro area, including those detailed on the Western Sydney page:
| Project | Precinct | Developer | Capacity | Stage | Last verified |
|---|---|---|---|---|---|
| NEXTDC S7 | Eastern Creek (west) | NEXTDC | 612 MW (planning) | Prepare EIS | 27 Sep 2026 |
| Mamre Road Campus | Kemps Creek (west) | AirTrunk (SYD4 "Summit", reported) | 1 GW (portal) / 1.2 GW (reported) | Amended SSD | 27 Sep 2026 |
| CDC Marsden Park | Marsden Park (north-west) | CDC | 504 MW ICT | Under construction | 27 Sep 2026 |
| NEXTDC S4 | Horsley Park (west) | NEXTDC | 365 MW | Planning and development | 27 Sep 2026 |
| Goodman SYD01 | Artarmon (north) | Goodman | 61 MW IT / 90 MW utility | Under construction | 27 Sep 2026 |
| Macquarie IC3 Super West | Macquarie Park (north) | Macquarie Data Centres | 47 MW | Opening slated Sep 2026 | 27 Sep 2026 |
| Global Switch Sydney East expansion | Ultimo (city fringe) | Global Switch | +47 MW (to ~90 MW) | Application filed (DCD) | 27 Sep 2026 |
Existing Operators
Sydney's operating facilities cluster in four areas.
North: Macquarie Park, Artarmon, Lane Cove West
The northern corridor has established enterprise and cloud facilities with good fibre routes to the CBD and North Sydney.
| Operator | Facilities |
|---|---|
| NEXTDC | S1 Macquarie Park (16 MW), S2 Macquarie Park (30 MW), S3 Artarmon (80 MW), S6 Artarmon (13.5 MW, which NEXTDC calls its first AI factory data centre) |
| Macquarie Data Centres | Macquarie Park campus, including IC3 Super West |
| AirTrunk | SYD2, Lane Cove West |
| Goodman | SYD01 Artarmon (under construction) |
City fringe and south: Ultimo, Alexandria, Mascot
These facilities are dense with network interconnection and serve customers who need low latency to the CBD and to carrier networks.
| Operator | Facilities |
|---|---|
| Global Switch | Sydney East (400 Harris Street, Ultimo) and Sydney West |
| Equinix | SY1 (Mascot), SY5 (Alexandria) and other SY facilities |
West and north-west
Most new hyperscale capacity: AirTrunk SYD1 and SYD3 (Huntingwood), NEXTDC S4 and S7, CDC Marsden Park and Eastern Creek, Microsoft Kemps Creek, and Equinix's SY9x xScale facility at Rosehill. Covered in detail on the Western Sydney page.
Hyperscale cloud
AWS, Microsoft, Google and Oracle all operate Sydney cloud regions, using a mix of self-built facilities and capacity leased from the operators above. AWS plans to invest A$20 billion in Australian data centre infrastructure from 2025 to 2029, including in Sydney (Amazon). Microsoft announced a A$25 billion Australian investment to the end of 2029 in April 2026 (Microsoft).
Operator directory: Data centre operators in Australia
Data Centre Construction
Sydney construction activity is shifting in two directions at once:
- Large greenfield campuses in the west. Multi-building, multi-phase programmes lasting many years (Marsden Park, S7, Mamre Road).
- High-density infill in the north and city fringe. Smaller buildings designed for AI densities on established sites with existing power: Goodman SYD01, IC3 Super West, and the Global Switch Ultimo expansion. The Ultimo proposal adds 47 MW with little new floor space.
In NSW, data centres with more than 15 MW of electrical capacity are State Significant Development, assessed by the state rather than local councils (Gadens).
More: Data centre construction in Australia
Power & Grid Infrastructure
Is Sydney running out of power for data centres?
In parts of the Sydney basin, transmission capacity for new large loads is close to fully allocated. Transgrid reports more than 10 GW of data centre connection enquiries within a 12 km radius of its Sydney West substation since late 2024. That is equivalent to the peak winter load for the whole of NSW. Transgrid says available capacity in the Sydney basin "may soon be fully utilised by new connections".
Policy responses in 2026:
| Date | Change | What it does |
|---|---|---|
| 14 Aug 2026 | Transgrid Network Capacity Allocation Policy | For loads of 30 MW or more, capacity is allocated only when a network connection agreement is signed. Conditional agreements require evidence of progress on permits, land, construction, equipment and financing |
| 5 Aug 2026 | NSW Electricity Infrastructure Investment Amendment Bill 2026 introduced | Extends REZ-style access scheme powers to large loads so data centres pay for the network infrastructure they need (Energy-Storage.news) |
| 17 Aug 2026 | NSW Data Centre Policy Framework | Six performance areas, including no net cost to consumers and funding additional water and energy supply (NSW Government) |
Distribution in Sydney is split between Ausgrid (inner, north and east), Endeavour Energy (west and south-west) and Transgrid at transmission level.
Water
Sydney Water says data centres currently use less than 1% of Greater Sydney's water, about 3.5 billion litres a year. It estimates the sector could increase Greater Sydney's total water demand by up to 20 to 25% by 2035, as reported by w.media. Sydney Water says it prioritises recycled water for the sector and that residential customers will be no worse off (Sydney Water).
More: Data centre power in Australia
Connectivity
Sydney is Australia's main international connectivity point on the east coast, with trans-Pacific cables to the United States and routes to Asia via systems including INDIGO. That concentration is why interconnection-focused facilities (Equinix's SY campus, Global Switch Ultimo, NEXTDC's northern sites) are in the inner city, while large hyperscale campuses in the west connect back to them over diverse metro fibre.
For a new campus, diversity matters more than distance: at least two physically separate fibre routes into the site, ideally to different interconnection points.
More: Data centre fibre · Data centre networking
AI Infrastructure
Sydney's AI-specific projects include:
- NEXTDC S7. A non-binding MoU with OpenAI (December 2025) for an AI campus and GPU supercluster, with the first phase targeted for the second half of 2027, subject to approvals.
- NEXTDC S6, Artarmon. Described by NEXTDC as designed for AI factories.
- Macquarie IC3 Super West. Built for high-density power and liquid cooling.
- Firmus Project Southgate. The CDC partnership includes planned NSW deployments.
More: AI Data Centres in Australia
Data Centre Suppliers in Sydney
Sydney has the deepest data centre supply chain in Australia: head contractors, HV electrical contractors, mechanical services firms, commissioning agents and equipment distributors. Browse by category:
Electrical · Cooling · Construction · Engineering · Fire protection · Security · Facilities management
Latest Sydney Data Centre Developments
20 August 2026. Transgrid publishes its latest Sydney basin network capacity update. Source
17 August 2026. NSW Government releases the NSW Data Centre Policy Framework and Guidelines. Source
14 August 2026. Transgrid's Network Capacity Allocation Policy takes effect.
8 August 2026. CDC's KC1 (144 MW, Kemps Creek) reported at SEARs stage. Source
Frequently Asked Questions
How many data centres are in Sydney?
The NSW Government counts more than 60 facilities in NSW that are operating or under construction, most of them in Greater Sydney. DC Byte counts 162 operational data centres nationally.
Where are Sydney's data centres located?
Established facilities are in Macquarie Park, Artarmon, Lane Cove West, Ultimo, Alexandria and Mascot. Most new hyperscale capacity is in Western Sydney: Eastern Creek, Kemps Creek, Horsley Park, Huntingwood and Marsden Park.
How long does a Sydney data centre take to approve?
Under the August 2026 NSW framework, projects that meet the Government's performance measures receive a commitment to assessment within 75 days. Projects that do not meet the measures follow the standard SSD process, which has historically taken considerably longer.
Who supplies power to Sydney data centres?
Transgrid operates the transmission network. Ausgrid and Endeavour Energy distribute power, depending on location. Large campuses usually connect at high voltage through an on-site substation.
Supplying Sydney's Data Centre Market?
Sydney has the most projects, the most operators and the most competition among suppliers. AISB helps suppliers build visibility with the developers, operators and head contractors behind Sydney's pipeline.
Sources & Verification
- DC Byte: Australian Data Centre Forecast Report, Apr 2026. Link
- Venture Insights: 2026 Australia Data Centre Outlook. Link
- Transgrid: Data centres and electricity capacity in NSW, Aug 2026. Link
- NSW Government: Data Centre Policy Framework, 17 Aug 2026. Link
- NEXTDC: Sydney data centres. Link
- AirTrunk: Australian locations. Link
- Equinix: Sydney data centres. Link
- DCD: Global Switch Ultimo expansion. Link
- w.media: Sydney Water data centre demand. Link
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