Outback town says grid connection key to capturing AI investment | ABC Australia (AU) | AI boom infrastructure race | Outback Queensland mayor Greg Campbell says remote areas could host next-gen data centers, but reliable grid connection is essential. CopperString project crucial for industry certainty. National security implications of data center location also noted. | Australia | AI | Data Centers | Infrastructure | Technology | Greg Campbell | CopperString | National Security | Energy | Queensland

As the world races to build the infrastructure for the artificial intelligence boom, the mayor of an outback Queensland town believes the next generation of data centers should be located hundreds of kilometers from the nearest city.

“

I've been talking about data centres with different companies for many years … but in the last month, I've had two return calls from companies

Cloncurry Mayor Greg Campbell sees the remote Australian bush as the perfect home for the critical infrastructure required by AI. He has been in discussions with companies interested in building data centers outside of urban areas, noting a recent increase in inquiries. "I think these companies are trying to get ahead and looking to areas … outside that urban area," Campbell said.

However, the biggest hurdle for establishing data centers in remote locations like Cloncurry is securing a substantial and affordable energy supply. Unlike urban areas, Cloncurry is not connected to the national energy market and relies on local renewable projects and diesel generators. "Because the north west isn't connected to the national electricity market, the mines, predominantly as the biggest users, will say that it's some of the dearest power probably in the world," Campbell explained.

“

I think these companies are trying to get ahead and looking to areas … outside that urban area.

The state government has committed to connecting the region to the east coast grid through the CopperString project, which Campbell sees as essential for industry certainty. "CopperString is probably the precursor to turn that interest into a genuine business," he stated. He stressed the need for a firm timeline for the project to enable companies to make "bankable decisions."

“

CopperString is probably the precursor to turn that interest into a genuine business

Beyond commercial interests, the strategic importance of data centers is increasingly recognized. Raelene Lockhorst, deputy director of the Australian Strategic Policy Institute, views them as essential infrastructure. "Where we build data centres is now a national security decision, not just a commercial one," she said, adding that "Northern Australia offers the combination that makes it the natural place to start."

“

Because the north west isn't connected to the national electricity market, the mines, predominantly as the biggest users, will say that it's some of the dearest power probably in the world.