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Sugar Shack is a challenge in Sanctuary Hole to find a hidden shack.
Strategy
After entering Sanctuary Hole from the top and following the path past the first group of enemies, there is a possible detour to the right, by jumping over a railing onto a ramp and then over some debris. An isolated shack has a power switch with a door right beside it. Power lines leading to the switch also help finding the shack. Entering the shack completes the challenge.
The power switch controls an electric fence at the far end of the building entered after taking the elevator down.
Borderlands 2 Sanctuary hole sugar shack location-0