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Outback town says grid connection key to capturing AI investment

An outback town says it has the land and space for AI infrastructure, but without a connection to the national electricity grid, investment remains on hold.

Outback town says grid connection key to capturing AI investment

In north-west Queensland, Cloncurry Mayor Greg Campbell is pushing for the town's connection to the national electricity market as a crucial step to attract artificial intelligence (AI) investment. With the growing importance of data centres in Australia's economy and security, Campbell hopes that a firm timeline for the western leg of CopperString, a regional power project, will give investors the certainty they need to move forward.

Currently, Cloncurry and the surrounding area rely on decentralised renewable energy sources and diesel generators, as they are not connected to the national energy market. Queensland Treasurer David Janetzki has proposed a $200 million North West Energy Fund to support local energy solutions for potential data centre projects. However, the focus of the government's immediate attention remains on the eastern link between Townsville and Hughendon.

Experts suggest that northern Australia, with its abundant land, renewable energy potential, and strategic location, is ideal for building the next generation of data centres. The Australian Strategic Policy Institute's Raelene Lockhorst emphasizes that the location of these centers is now a national security decision, rather than just a commercial one.

However, while data centres can bring significant economic benefits to the regional economy, they also pose hyperlocal costs in terms of pollution and competition for electricity.

Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at abc.net.au →

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