Hyperscalers Propose Dozen Data Centres in Northern Territory
Concept image of Project Ares data centre planned for the Barkly region in the Northern Territory

Date

Spread the love

Arabic version: مزودو مراكز البيانات العملاقة يقترحون اثني عشر مركزًا في الإقليم الشمالي

Twelve large data centre proposals are targeting the Northern Territory, including a gigawatt-scale project dubbed Project Ares planned for the remote Barkly region.

According to ABC News, developers and advisers say the territory’s high solar irradiance and nearby Beetaloo Basin gas reserves are major draws. Vantage North Group, which comprises three former senior NT public servants and advises gas and data centre companies, says the scale of some proposals would require about 1 gigawatt of continuous power; by comparison, the Darwin‑Katherine power system peak demand in 2024–25 was 294.9 megawatts, the NT Utilities Commission reported. Jason Finlay, a partner with Vantage North Group, told ABC News the NT’s sunny skies and vast gas resources are part of the attraction for AI firms.

Environmental groups have raised concerns about the projects’ energy and water demands. Greenpeace has called for a pause on data centre approvals until a legislative review, warning the recent development “frenzy” could derail the transition to renewables. A Greenpeace co-authored analysis cited in the report estimated data centres could account for 13 per cent of national electricity demand by 2040. Greenpeace’s report also described the amount of water used by data centres as “dizzying.” One proposed gigawatt‑scale Barkly facility would use up to 4 gigalitres of water a year, which NT Power and Water Corporation figures say is more than greater Darwin uses in a month. Sydney Water expects data centres could represent a quarter of Sydney’s annual water use by 2035.

The proposals matter because they would require unprecedented amounts of electricity and water. Developers have said solar facilities could be built to supply power, but companies could not afford to build enough batteries to rely entirely on solar and would require “some kind of gas firming,” according to Mr Finlay. Environmental advocates say the projects are therefore likely to involve gas or other fossil fuels unless binding rules require new renewable generation.

Proponents are also pitching the NT on its proximity to South‑East Asian markets and undersea cables linking Australia to places such as Singapore, which developers say makes Darwin an attractive location to serve regional data demand.

What happens next: the federal government is considering its options, and AI policy is expected to feature prominently at Labor’s national conference, where the party could expand its platform to encourage greater oversight on safety risks, copyright and managing electricity and water demand. According to Vantage North, proponents would still consider the Northern Territory attractive even if a renewables‑only mandate were imposed.

Related sections: Australia/استراليا | Australian Capital Territory | Northern Territory | General | Economy/اقتصاد

About the Author

More
articles