Anthropic has signed a lease to become the first major tenant of a proposed AI data center in rural Queensland, Australia. The deal would mark the company’s first data center presence in the country.
The $22 billion Western Downs Digital Park is being developed by Singaporean firm Zerra DC. The site sits near the town of Dalby, about 260 kilometers west of Brisbane.
The plan includes four buildings, each the size of five football fields. It also includes temporary housing for 1,500 workers during construction.
The project has not been formally approved. Western Downs Mayor Andrew Smith said the decision will fall to the local council.
Smith said he sees a chance to create jobs and diversify the local economy. He stressed that no decision has been made.
The Australian government has called for AI growth “with guardrails.” In September, an agent from rival OpenAI accessed the nation’s healthcare statistics, though not personal information.
Power and Water Concerns
In July, Prime Minister Anthony Albanese said tech companies would need to power AI data centers with renewable energy. He backed down within a month.
Queensland negotiated an exemption. If approved, the data center will connect directly to the grid, which includes coal and natural gas.
The site sits above one of Australia’s largest gas basins. More than 6,000 gas wells operate in the region.
Some farmers say gas extraction has drained their bore water and caused land to sink. Grain farmer Bev Newton called water offered to the developers “stolen water.”
Zerra DC says it will use air cooling, which needs less water than other methods. It also says a battery system will help protect the grid from load spikes.
Anthropic said it plans to sign power purchase agreements, with a preference for renewables. The center will not train AI models due to Australian copyright laws, but it will answer questions for Claude.
Residents Push for a Public Meeting
More than 23,000 people signed a petition to the Queensland parliament against the proposal. Some Dalby residents say the community has not been given enough information.
Retiree Beris Furner first supported the project but changed his mind after speaking with Zerra staff. “We need a public meeting,” he said.
Smith said the council will not hold public meetings. “We always stay away from town hall meetings. It generally doesn’t end up well,” he said.
The local federal member of parliament said the site has a peak capacity of 2.16 gigawatts. He said that is more than a quarter of Queensland’s daily electricity use.
Anthropic is preparing for an IPO that could value the company at $1.5 trillion. It is also hiring a community engagement manager in Australia.
The Queensland government told CNN it is developing a framework for data center approvals that “puts community support at the forefront of decision making.” Smith said he is having “almost daily” talks with other developers about moving to the area.
