While the elven palace of Aedrider sat at the highest tier of the city, Stark Academy sat one level below it. The academy itself took up most of the tier it sat upon. There were a handful of residential areas for those who ran and worked the shops and businesses on the academy's level. Still, a majority of its buildings were for the academy students and staff.
If one attempted to compare the size of Stark Academy to the Arcadios Royal Academy, then Stark was easily five times larger. It could almost be considered a city of its own. On top of that, if the rest of the capital was filled with technological wonders, then the academy was filled with even more wondrous things than that.
Magic Castle Bonus Chapter 7, Thank you, darkblade875! :D