A $10 billion AI data centre hub could be coming to Hazelwood after a Singaporean company, Keppel, struck a deal to lease the 123-hectare former power station site.
It would be the largest site of artificial intelligence infrastructure in Australia.
The site is ideal, as it has direct access to the power grid and a water source. Data centres like these require massive amounts of electricity to run the servers and in turn, massive amounts of water to cool the heat produced by the servers.
“The site near Morwell offers significant scalability, with clear pathways to securing competitively priced green power, non-potable water for cooling and low-latency fibre connectivity, making it a compelling location to site next-generation AI campuses,” said Chief Executive of Connectivity at Keppel, Manjot Singh Mann.
State Member for Morwell, Martin Cameron said that this announcement is “great news” and “a show of confidence in our industrial landscape and workforce capacity.”
He hopes this will encourage further investment into infrastructure and industry in Gippsland.
State Member for Eastern Victorian Melina Bath said that was an exciting announcement in terms of employment opportunities in the region.
“I look forward to seeing the project translate into secure local jobs, stronger industries and long–term regional economic growth,” she said.
With the closure of local coal-fired power stations over the next decade, projects that provide clarity for the local workforce and create opportunities for skilled workers are increasingly important according to the Latrobe Valley Council.
The Hazelwood site would have a power capacity of 720 megawatts. There are concerns from the Australian industry sector that these new AI infrastructure projects will deplete Australia’s already over-burdened energy system.
Its suggested location is within the proposed Gippsland Renewable Energy Zone, stretching from Morwell to Sale.
There is however major environmental concern across the world when it comes to data centres and the use of AI more broadly like these. Studies have shown that one request through ChatGPT consumes 10 times the electricity of a Google Search. When 80% of the world’s power comes from fossil fuels (according to the Environmental and Energy Study Institute), the environmental impacts of increased energy use from AI are potentially massive.
Globally, AI-related infrastructure is predicted to soon consume six times more water than the entire country of Denmark. Considering around a quarter of the world’s population already lacks access to clean water and sanitation, it poses a question about where our priorities are.
The Latrobe Valley Council is expecting to receive a briefing and a planning application from Keppel.
