1414 Degrees Pursues 1 GW Data Centre Deal in South Australia
Listed thermal battery technology innovator 1414 Degrees is actively pursuing a supply agreement for a substantial data centre project anticipated to reach 1 gigawatt (GW) in South Australia. The company has successfully signed a heads of agreement for this initiative.
The initial phase of the project will involve the construction of a 17 megawatt (MW) data centre, which will be developed by a currently undisclosed company. This facility is expected to expand to 200 MW and potentially increase further in the future.
Government Energy Initiatives and Data Centre Green Policies
This agreement arrives at a time when the federal government is aiming to mandate that data centres must source their own renewable energy in order to connect to the electricity grid. South Australia has already achieved a remarkable 75 per cent share of energy from wind and solar sources and is striving to reach a 100 per cent net renewables target by the end of next year.
Among the big operators in the data centre space, there’s widespread support for this government initiative. Notably, companies like Airtrunk are already taking proactive steps by securing renewable energy ahead of time. Meanwhile, some operators are crafting contingency plans that rely more heavily on gas-based backup energy sources.
Expanding the Aurora Energy Precinct
1414 Degrees has invested over ten years into the development of a molten silicon-based thermal battery as part of its efforts to commercialise the technology linked to the Port Augusta site, which has its own intriguing history. The latest agreement regarding the Aurora Energy Precinct aims to establish an initial modular data centre campus that could scale up to 200 MW, contingent upon the construction of a 275 kilovolt (kV) transmission line.
Ultimately, the project could culminate in a significant 1 GW installation. Under the current arrangement, data centre operators will have exclusive rights over a 40-hectare parcel of land within the Aurora site while the finer points of the deal are negotiated.
Historical Context and Future Plans
The expansive 1580-hectare location, situated approximately 20 km north of Port Augusta, was originally planned for a concentrated solar tower by the US firm SolarReserve, which subsequently went into liquidation, leading to the project’s abandonment. In 2019, 1414 Degrees acquired these plans with the intention of revitalising the project alongside the then-branded Vast Solar.
The aim was to construct a dual-hour 140 MW battery on site, alongside a 30 MW concentrated solar facility featuring 288 megawatt-hours (MWh) of thermal storage, in conjunction with a solar methanol demonstration project. However, these plans encountered challenges in 2022 when a major investor withdrew, and were further complicated last year when Vast Renewables entered voluntary administration, stalling Australia’s concentrated solar ambitions.
Currently, 1414 Degrees appears to have transitioned from its previous tenant to a data centre client. The complete terms of the agreement are still under discussion. An ASX statement indicates that under the proposed structure, 1414 Degrees will supply the necessary land, power, and connectivity, while the data centre partner will contribute capital, technical knowledge, and operational capabilities to set up and run the AI data centre infrastructure.
Several essential terms remain to be negotiated, including lease and access fees, the pricing structure for electricity, connection agreements, and metering, as well as potential profit-sharing arrangements for 1414 Degrees.
In addition, the company has expressed intentions to develop its Aurora location into a hub for heavy electric vehicle recharging.
