A gas-rich outback station may accommodate a $28 billion off-grid AI data center.

      In a cattle station situated deep in the Northern Territory outback, approximately 683km south of Darwin, a developer based in Singapore aims to construct one of the largest data centres in the southern hemisphere.

      This initiative relies on a resource abundant in the region that the electricity grid currently does not supply: gas. Energy North submitted a proposal titled Project Ares to Australia’s federal environment department in June, which is now open for public feedback.

      The off-grid facility would be located at Murranji Station in the gas-rich Barkly region, close to the Beetaloo basin, and would operate using a combination of gas-fired power, solar energy, and batteries. This project comes at a time when Australian regulators are tightening energy regulations related to AI infrastructure.

      The projected figures are substantial yet, in some aspects, still unclear. Energy North anticipates an investment of about AU$11.9 billion for the first phase alone, as reported by Data Center Dynamics. Bloomberg, which highlighted the region's interest in the project, estimated the total cost at around $28 billion— a figure not reported elsewhere, and the specifics regarding currency and construction phase are not clarified.

      The initial phase is expected to provide 1 gigawatt of computing capacity, constructed in two stages of 500MW each, with plans for the campus to eventually scale beyond 5GW. Approximately 1,038MW of gas-fired generation, characterized as hydrogen-ready, will power the facility, along with 3GW of solar energy and 16GWh of battery storage.

      The data centre would occupy around 90 hectares, while the entire site spans approximately 19,150 hectares, with the solar farm alone extending to nearly 7,000 hectares. Building solely off-grid avoids challenges that are arising closer to the coast. Grid operators have indicated that data-centre capacity in western Sydney is nearing its limits, prompting developers to seek more affordable land inland, along with their own dedicated power sources.

      With Microsoft’s AU$25 billion investment and a series of hyperscale plans, Australia is becoming one of the more active markets in the region, and the Territory, with its ample sunlight and space relative to customers, is now receiving a portion of these investments.

      Project Ares has been designated Commonwealth Major Project Status, facilitating federal coordination but not granting full approval. The Northern Territory Environment Protection Authority is currently reviewing the proposal, and a decision under the Environment Protection and Biodiversity Conservation Act is necessary before any construction can begin.

      Energy North is a subsidiary of Raggiana Global and is headed by Scott Criddle, a former chief executive of engineering contractor Decmil. The company positions itself as an independent Australian green-energy developer, presenting the gas component as a transitional resource for reliability that is intended to shift toward renewables as the project progresses.

      Similar commitments to future sustainability are being made by Nvidia-supported data centres in other parts of the country. The Beetaloo basin beneath the Barkly provides a ready source of gas, and a data centre that utilizes its own onsite supply converts a stranded resource into a client.

      This rationale contributes to the sudden appeal of the remote Territory, which has a sparse population and limited grid access, to hyperscale developers. However, it also highlights the complexity in the proposal, as a facility marketed to eventually operate sustainably will begin its operations using gas nearly at 1 gigawatt.

      A final investment decision is expected to be made within 12 to 18 months after approvals are granted, with the first phase anticipated to be developed in a similar timeframe thereafter. Project Ares is among roughly a dozen data-centre proposals currently submitted across the Territory, including Energy North’s own earlier-stage Project Sol, a green hydrogen and ammonia initiative.

      The viability of the outback to support such extensive computing infrastructure, powered by a system intended to become cleaner over time, is a question that will begin to be addressed over the next 18 months.