Sydney is the host of Australia's first neutral Internet exchange (IX) point, AusIX.
The centre is aimed at helping local Internet service providers (ISPs) and content providers get the best value for their dollar, and ultimately pass this on to users.
The facility, a joint initiative between EP.Net, LLC and Exodus Communications, is being hosted in Exodus' Internet data centre in Pyrmont, with EP.Net handling operations and management.
Exodus officials said the centre will provide the reliability and scalability customers need to conduct business on-line and enable ISPs to alternate traffic through their networks via a neutral exchange point.
EP.Net partner Bill Manning said: "This is the first time in Australia that ISPs and content providers have been able to establish peering and transit relationships in a world-class, neutral environment, which will mean faster, more reliable, and cheaper network connections, greater control over bandwidth utilisation and enhanced data security."
AusIX will tap into the existing networks of local telecommunication companies and let customers exchange traffic between carriers according to route, bandwidth, network, security and carrier cost.
NSW Treasurer and Minister for State Development Michael Egan, said: "More than 60 per cent of Australia's Internet traffic is carried in NSW and this new facility will provide faster, cheaper access for e-business."