Major AI company Anthropic signs deal to use $32b Queensland data centre

Anthropic, a leading AI company, has inked a deal to utilize a significant portion of a $32 billion data center under construction in Queensland's Western Downs. This facility, set to be the largest of its kind in Australia, is being developed by a Singaporean firm near the town of Dalby. The data center is expected to consume the power equivalent to approximately 1.5 million typical Australian households. The lease agreement is pending approval from the Foreign Investment Review Board.

The project, known as the Western Downs Digital Park, aims to create thousands of ongoing jobs once fully operational. Anthropic plans to start using the center for its artificial intelligence program, Claude, to respond to user inquiries, rather than for the training of AI models. Despite the development application only recently being filed, Anthropic anticipates beginning operations by 2027.

Premier David Crisafulli attributes this major investment to his recent trade mission to the United States, which highlighted Queensland's energy security, strategic location, and simplified approval process. The government anticipates that this data center investment will contribute to reduced energy costs for consumers and companies, while also creating employment opportunities.

The Western Downs hub, covering about 725 hectares, is projected to take four to six years to construct. It is designed to use minimal water during operation, with its water usage comparable to a conventional office building of similar size. Additionally, the project does not require new transmission infrastructure.

The Queensland government and the Commonwealth had previously disagreed on rules for new data center development, with the federal government advocating for renewable energy anchors. However, the state government successfully argued for a more flexible approach, allowing the use of various energy sources, including coal and gas.

Anthropic is required to invest in local communities and hire an engagement manager to address residents' and councils' concerns. The company will also cover the full cost of connecting to the grid, including any necessary network updates.