Off-Grid Data Centre Powered by Solar, Gas, and Battery in Northern Territory
A Singaporean company is presenting an ambitious plan for the Northern Territory of Australia, featuring an off-grid data centre powered by an impressive 3 gigawatts (GW) of solar energy, 1 GW of gas, and a staggering 16 gigawatt-hours (GWh) of battery storage capacity.
The proposed Project Ares is set to be built on Murranji Station, acquired last year for $44 million by Viv Oldfield, the Northern Territory’s largest landowner. This location lies several hours north along the Stuart Highway from Suncable’s significant solar proposals of 10 GW and 20 GW.
Environmental Concerns Raised
Energy North, the company behind the proposal, aims to utilise between 6,000 and 7,000 hectares of land for solar energy and establish a “hydrogen-ready” gas plant. This proposition has sparked controversy, particularly from Greenpeace, which argues that it would lead to more than double the fossil gas generation in the region. Greenpeace campaigner Solaye Snider stated, “This hyperscale project proposes massive new off-grid gas infrastructure, making a mockery of the federal government’s unenforceable ‘expectations’ that data centres will cover their own power use with renewables.”
Snider further questioned the source of the new gas, raising concerns about potential fracking in the Beetaloo region and emphasising that communities deserve comprehensive information before any approval is granted.
Compliance with Federal Guidelines
Federal guidelines, agreed upon by the majority of state and territory energy ministers in March, assert that data centres must generate and have access to their own clean energy or storage solutions. According to Energy North’s EPBC referral, the gas power station is necessary to provide reliability for the solar plant.
The data centre itself will occupy a substantial 90 hectares and will be constructed in two stages, each catering to 500 megawatts (MW) of IT demand. In total, the complete project will encompass a footprint of 19,150 hectares.
Additional Projects and Development Plans
In addition to Project Ares, Energy North is also pursuing another initiative, referred to as Project Sol. This project, which was not included in the EPBC referral lodged in June, proposes the creation of an additional 2 GW of solar energy and a battery system to support a green hydrogen plant in Darwin, projected to export 4.7 million tonnes annually.
Daniel Hunter, who is overseeing both projects, revealed their strategy to develop both the data centre and ammonia ventures without intending to package them for resale. “We’re funded through the current development phase,” he shared with Renew Economy. “Project Ares is in the public comment phase of its EPBC referral, and its timeline depends on the Commonwealth’s decision regarding its classification as a controlled action, along with the Northern Territory EPA’s assessment pathway, so we can’t provide a fixed schedule.”
Northern Territory’s Emerging Data Centre Market
The concept of establishing a significant data centre in the remote Northern Territory is not entirely novel; Suncable is currently marketing to data centre clients for site locations near its solar installations. However, Project Ares marks the first substantial data centre-first initiative making its way through the federal planning process.
At present, there are 12 entities exploring opportunities for data centre developments in the Northern Territory, drawn by the subsea cable connecting Australia directly to Singapore, as reported by ABC this week. While regional data centres have yet to be trialled in Australia, there is considerable interest among electricity generators and transmission companies in relocating this sector away from urban areas and into more remote regions.
Hunter remarked that there is “commercial interest” in the data centre and that discussions with potential clients are underway, although they are still in the preliminary stages.
Green Hydrogen Market Potential
The push for green hydrogen and ammonia exports in Australia faces challenges, particularly following the high-profile failures of companies like Fortescue and BP, the latter of which exited the Australian Renewable Energy Hub in the Pilbara. Nevertheless, Hunter expressed optimism, stating, “Energy North is ‘clear-eyed’ about the nascent nature of this market.”
“Project Sol is currently at the pre-FEED stage [where feasibility is evaluated], and we are strategically utilising this period to mitigate risks before committing substantial capital, ensuring we can act swiftly as market conditions evolve,” Hunter explained.
He added that the projected 2028 final investment decision (FID), mentioned on their website, should be considered a guideline and will change in line with market dynamics, emphasising that a final investment decision will rely on funding and a mature offtake market rather than a fixed date.
Environmental Impact Considerations
The data centre’s creation is anticipated to impact up to eight endangered and threatened species and require as much as 4 billion litres of water annually, according to the EPBC referral. The list includes the greater bilby, representing the only mammal affected, along with various reptiles such as the northern blue-tongued skink and the plains death adder.
Moreover, the proposed project is expected to influence the grey falcon and four wetland bird species—sharp-tailed sandpiper, curlew sandpiper, Australian painted snipe, and common greenshank—known to inhabit wetlands within the Northern Territory. However, this list remains provisional, as the project is still in the early concept stage and comprehensive field surveys have yet to be completed.
