International company's plan for multi-billion-dollar data centre in regional Qld

By Bella Munro
ABC Southern Qld
Topic:Data Centres

Posted Mon 24 Aug 2026 at 7:03pmMon 24 Aug 2026 at 7:03pmMon 24 Aug 2026 at 7:03pm

The concept model of a large-scale data centre project that has been proposed for the Western Downs. (Supplied: Urbis)

In short:

A $31.9 billion data centre project has been proposed for regional Queensland, amid national conversations around water and energy consumption.

What's next?

The federal government is set to lay out new rules for how data centres use energy at national cabinet this week, with Queensland opposing the suggested laws.

abc.net.au/news/plans-for-australia-largest-data-centre-in-regional-queensland/107071624Link copiedShareShare article

With the energy demands of artificial intelligence prompting broader policy debates across Australia, regional Queensland is now facing the reality of hyper-scale expansion with a $31.9 billion data centre being proposed for the Western Downs.

The Western Downs Digital Park, set to be the largest facility of its kind in Australia, has been earmarked for a 725.5-hectare plot near Dalby, roughly 250 kilometres north-west of Brisbane.

The company behind the project is Singapore-based developer Zerra DC, which operates hyper-scale data centres across the Asia Pacific.

A gas well from the air on Max Winder's property west of Dalby, October 2019. — A coal seam gas well near Wambo Feedlot, on the Western Downs. (ABC Southern Queensland: Nathan Morris)

The site, 37km north-west of Dalby, is currently home to a 24,000-head feedlot owned by Wambo Cattle Company.

Although this proposed data centre is strategically located near major regional power stations, there are ongoing concerns across the country about energy consumption and water security as the development and construction of data centres surges.

A map showing the proposed site of the Western Downs Digital Park and surrounding energy sources. (Supplied: Urbis)

The federal government is currently refining proposed new national rules for how data centres consume energy, including a requirement for them to purchase power from renewable energy sources.

In Southern Queensland, there has been a recent push from the Toowoomba Regional Council to ensure data centres do not encroach on drinking-water sources in the region.

Councillor Rebecca Vonhoff said the council took a national lead in passing a motion.

"We have this prime industrial land, we own our water infrastructure, we provide drinking water to our residents and, most importantly, we have a personal and very deeply felt connection to water, having lived through some devastating droughts," she said.

Water and energy consumption

While the Western Downs Digital Park plans to prioritise air-cooled technology and avoid reliance on town water infrastructure, the construction and operation will still be water intensive.

During construction, it would require about 522 kilolitres of water a day.

That would be followed by 26.9 megalitres per building for a one-time flush-and-fill process, equivalent to the average annual water use of 155 Australian households.

Under regular operation, the centre would use about 16.5kL of water each day.

It would source its water from coal seam gas water, rainwater harvesting, water delivery, recycled wastewater, and on-site surface water, according to the development application.

A man wearing a collared shirt and suit jacket, smiling. — Western Downs mayor Andrew Smith says there are a lot of questions being raised about the data centre proposal. (ABC News: Chris Gillette)

Beyond water security, the centre could draw heavily on power networks, but Western Downs mayor Andrew Smith said, as the "energy capital of Queensland", the region was uniquely positioned to handle the load.

"We've built a lot of energy infrastructure in our region that has benefited our region," he said.

"So, if there needs to be more built, well, bring it on."

He said there would be a rollout of community consultation about the proposal.

"Questions around water, questions around power, around geography — they're the main questions that we're hearing out of our community," Cr Smith said.

"But certainly, those questions around water are very real and the applicant will need to deal with those."

Queensland Minister for Water Ann Leahy said the community should have a voice in this proposal, just like any other major project.

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