Queensland's Energy Landscape at Crossroads as $31.9 Billion Data Centre Proposed

A proposed hyper-scale data centre in the Western Downs, 250 kilometres west of Brisbane, has sparked debate about its potential impact on the region's energy consumption. The $31.9 billion project, proposed by Singapore-based developer Zerra DC, could increase Queensland's daily electricity use by 25 per cent.

The Western Downs Digital Park, earmarked for a 725-hectare plot near Dalby, would have a peak capacity equivalent to 2.16 gigawatts (GW), a power draw comparable to 1.5 million average Australian households. At the end of its four-phase rollout, it could draw about 47 gigawatt-hours (GWh) a day, significantly adding to Queensland's average daily energy consumption of 170GWh.

Energy Consumption Concerns

Electro-mechanical engineer Andreas Helwig described the project's energy requirements as an "enormous amount of energy". "Getting this wrong will impact grid stability and cost to consumers," the associate professor at the University of Southern Queensland said.

Powering the Data Centre

Climate Finance Energy director Tim Buckley said the increase in power demand would need to be matched by investments into new energy generation, which could transform the regional and rural areas. "The beauty of the land grab in the data centre gold rush that's underway right now is that capital is pouring in," Mr Buckley said.

A Zerra DC spokesperson said the project would be well positioned among existing energy infrastructure, including three gas-fired power stations. The data centre would be located near existing gas-fired power stations, solar and wind farms, and a major substation that acts as a "critical electrical junction" sending power to south-east Queensland and New South Wales.

Debate Over Energy Sources

The federal government has outlined plans for developers to use renewables as the national standard to power data centres, while Queensland and the Northern Territory governments have pushed to use gas or coal. Premier David Crisafulli has lobbied for an "energy-agnostic" approach to powering data centres, arguing that increased generation alongside the projects could decrease prices.

"By virtue of doing that, it can in fact help us drive down power prices," Mr Crisafulli said during a recent trip to the US, where he met with AI companies. Mr Buckley said gas could play an "important small and declining" role in powering data centres, predominantly to back up renewable generation.

Community Concerns and Benefits

Cotton and grain grower Liza Balmain, a spokesperson for the anti-gas group Save Our Darling Downs, expressed concerns about the impact of energy generation projects on the region. "As we've seen with coal seam gas, it can fracture communities," she said.

Western Downs Regional Council mayor Andrew Smith said the project was the dawn of a new era for the region. "We need to be looking ahead at what's going to sustain this region," he said. "We've got a perfect mix of coexistence of ag [agriculture] and energy."