Singapore-based company Zerra DC is proposing a $31.9 billion data centre project on a 725.5-hectare plot near Dalby in regional Queensland. The facility, which would be the largest of its kind in Australia, would use air-cooled technology and source water from various sources, including coal seam gas water and rainwater harvesting. According to the development application, the construction process would require approximately 522 kilolitres of water per day, while regular operation would use around 16.5kL of water each day. The project is set against a backdrop of national debates about energy consumption and water security, with the federal government refining new rules for data centres to purchase power from renewable energy sources.
Written by the local model on 2026-08-24,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
A $31.9 billion data centre project has been proposed for regional Queensland, which would be the largest facility of its kind in Australia. The proposed site is a 725.5-hectare plot near Dalby, approximately 250 kilometres north-west of Brisbane. The company behind the project, Singapore-based developer Zerra DC, operates similar facilities across the Asia Pacific. However, there are concerns about energy consumption and water security due to the facility's needs. In related news, the federal government had previously pushed for data centres to use renewable energy sources, but Queensland has been allowed to use coal or gas to power its data centres, thanks in part to Premier Crisafulli's efforts. This decision was made at a meeting of national cabinet, where state and territory leaders agreed to undertake further work on standardizing data centre construction.
Written for “Queensland Data Centre Plans” on 2026-08-31,
grounded in this article and the 1 other(s) covering the same event.
Why this leaning score
The model judged this article politically coded and scored it +0.35, but every quote it verified points left, so the score is not published.
Written under an earlier scoring contract, which gave a paragraph
rather than checkable quotes. Re-analysing this article replaces it.
Leaning score withheld for article 1963: score contradicts its own evidence · logged 2026-08-28
In short:
A $31.9 billion data centre project has been proposed for regional Queensland, amid national conversations around water and energy consumption.
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project → propose → consumption
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.
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Queensland → set → laws
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.
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centre → prompt → 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.
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Park → set → Brisbane
The company behind the project is Singapore-based developer Zerra DC, which operates hyper-scale data centres across the Asia Pacific.
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which → base → Pacific
The site, 37km north-west of Dalby, is currently home to a 24,000-head feedlot owned by Wambo Cattle Company.
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site → own → 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.
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development → propose → centres
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.
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them → refine → 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.
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centres → ensure → region
Councillor Rebecca Vonhoff said the council took a national lead in passing a motion.
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council → say → 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.
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she → have → droughts
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.
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construction → plan → infrastructure
During construction, it would require about 522 kilolitres of water a day.
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it → require → water
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.
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That → follow → households
Under regular operation, the centre would use about 16.5kL of water each day.
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centre → use → water
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.
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It → source → application
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.
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region → draw → load
"We've built a lot of energy infrastructure in our region that has benefited our region," he said.
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he → build → region
He said there would be a rollout of community consultation about the proposal.
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He → say → 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.
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Smith → hear → community
"But certainly, those questions around water are very real and the applicant will need to deal with those."
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applicant → need → 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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community → say → project
