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I have a large file share in London UK with around 2TB of data, I need to share this with some users in Sydney Australia, I've previously been using DFS to share files across the locations but these shares where much smaller.

I'm thinking of using Azure File Sync to sync the share between the UK Windows Server and the Sydney server.
Azure file sync requires a storage account creating to host the files but where should this be created (UK South or Australia East)? I originally thought to create two storage accounts, one in each region and sync in Azure but you can't have multiple cloud end points. Therefore do I create the storage account in Aus East and sync all files (and disable tiering on the London server (so all files are synced) and then enable tiering on the Sydney server so only some files are copied to the server?

Is this is best way to do this or would you recommend something else?

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You are correct, you can only have one file share, so you are going to have to pick one. This is really down to which region will benefit the most to having the file share closer. If one region is creating and uploading more large files, or regularly downloading large files then this would be the region to pick. Your going to need to make the decision based on your workloads.

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