Queensland data centre proposal could sharply increase electricity demand

A proposed $30 billion data centre in Queensland could have peak electricity needs comparable to the average consumption of 1.5 million households. The project’s potential demand is equivalent to about one-quarter of Queensland’s power usage.

A proposed data centre in Queensland’s Western Downs could increase the state’s daily electricity use by about 25 per cent, according to figures reported by ABC News. Singapore-based Zerra DC’s Western Downs Digital Park is planned for a 725-hectare site near Dalby, about 250 kilometres west of Brisbane.

The project’s four-phase rollout is expected to have a peak capacity of 2.16 gigawatts, comparable to the consumption of 1.5 million average Australian households. At full operation, it could use about 47 gigawatt-hours of electricity a day, compared with Queensland’s average daily consumption of 170 gigawatt-hours.

Electro-mechanical engineer Andreas Helwig described the power requirement as enormous and warned that getting the project’s energy supply wrong could affect grid stability and consumer costs. Climate Finance Energy director Tim Buckley said developers would need to invest in new generation as demand from artificial-intelligence computing grows.

Zerra DC said the proposed site was close to existing energy infrastructure, including three gas-fired power stations, nearby solar and wind farms and a major substation. The company said the data centre would connect directly to the substation rather than depend on the local distribution network serving nearby towns.

The federal government has proposed renewables as the national standard for powering data centres, while Queensland and the Northern Territory governments have supported using gas or coal. Queensland Premier David Crisafulli has argued for an energy-agnostic approach, saying additional generation could help reduce power prices.

The development application was lodged with Western Downs Regional Council, which will assess it alongside regulatory and environmental requirements. The council said approval could take years and construction four to six years. Mayor Andrew Smith said discussions about community benefit agreements with Zerra DC had begun, while local agriculture and anti-gas representatives raised questions about land, water and energy impacts.