From The Matrix wiki
Zion
Zion is the final human city on Earth, serving as the last bastion of resistance against the machine collective in the wake of the war between humanity and artificial intelligence.
Located deep underground near the Earth's core to utilise geothermal heat, Zion serves as the headquarters for the human insurgency. It is a rugged, industrialised society where the remaining free humans live in fear of the machines, whilst coordinating missions to infiltrate the Matrix to liberate enslaved minds. The city is protected by a massive blast door and a fleet of hovercraft, such as the Nebuchadnezzar, which are essential for navigating the subterranean tunnels and accessing the simulated reality.
Significance to the Prophecy
Zion is central to the belief in the One, a prophesied individual capable of manipulating the code of the Matrix to bring an end to the war. Throughout the franchise, the survival of Zion is the primary objective of the resistance, despite the machines' repeated attempts to destroy the city through systematic extermination cycles. Its existence represents the enduring human spirit and the struggle for autonomy against an oppressive technological regime.