Rural suburb flagged as home for proposed $40b 'hyperscale' data centre

A rural suburb near Darwin has been identified as the likely site for a proposed $40 billion hyperscale data centre, which would be powered by gas extracted and transported from the Beetaloo Basin in the Northern Territory. The announcement comes after the state government signed a "do-not-deal" agreement allowing gas company Beetaloo Energy to explore plans for an energy and data centre complex on a 185-hectare parcel of land in Weddell, a suburb on the outskirts of Darwin. The decision marks a shift in the region’s development strategy, as Weddell was previously considered a candidate for becoming the next satellite city in the Top End. Now, it is being positioned as a hub for large-scale digital infrastructure. The agreement grants Beetaloo Energy exclusive rights to the land, enabling the company to seek investors and assess the project’s feasibility. Lands, Planning and Environment Minister Joshua Burgoyne stated the move sends a message to investors that the Northern Territory government is committed to supporting major industrial projects. Beetaloo Energy’s managing director, Alex Underwood, described the initiative as “bold but simple,” aiming to establish a fully integrated energy and digital infrastructure precinct. He emphasized the growing global demand for data centre power, noting that the project could represent the next phase of the Industrial Revolution. The data centre would require two gigawatts of electricity, more than six times the combined peak demand of Darwin and Katherine during the 2024-25 period. If realized, the facility would surpass the scale of Western Australia’s Ichthys LNG project, one of the largest oil developments worldwide. Underwood outlined plans to deliberately oversize the proposed power plant so that it could supply excess energy back into the regional grid rather than relying on it. This approach, he argued, could help stabilize energy costs by increasing supply. However, he acknowledged that the project is still in its early stages and requires substantial government approval and financial backing. He pledged to engage with local communities through public forums and consultations, addressing concerns about the project’s impact. Despite these assurances, environmental groups have expressed reservations about the proposal. Some have called for a temporary halt to new data centre projects until more sustainable alternatives are explored. While Underwood suggested the possibility of integrating renewable energy sources like SunCable’s outback solar farm, he did not specify the exact proportion of clean energy that would be used. The company also declined to name potential commercial partners or detail how water resources would be allocated. The area, located approximately 40 minutes from the Darwin central business district, currently lacks the developed infrastructure needed to support such a massive undertaking. Underwood stressed that the project is still in its conceptual phase and that much work remains before it can proceed. Nevertheless, the government’s endorsement signals a significant step toward realizing the vision of a large-scale digital and energy hub in the region. As discussions continue, the focus will remain on securing necessary approvals, attracting investment, and ensuring the project aligns with broader economic and environmental goals.