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You can uncompress a zip file straight from the server?
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I am assuming it is something the server host offers, certainly worth checking as it will speed up the process. My zip file was 50MB more or less the first time.
Since this was your first upload, then I wouldn't be concerned yet. The regular updates (e.g. each sim) are smaller. They are only sending changes and additions. I do have the sim send those compressed. The game will uncompress for those importing and I use the server extract to unzip the reports. So check out what your server provides.