Regional Queensland is bracing for one of the largest digital infrastructure projects in Australia’s history, with a $31.9 billion hyper‑scale data centre proposed for the Western Downs a development that underscores the soaring energy demands of artificial intelligence.
The Western Downs Digital Park, set to become the biggest facility of its kind in the country, has been earmarked for a 725.5‑hectare site near Dalby, about 250 kilometres north‑west of Brisbane. The project is being led by Singapore‑based Zerra DC, a major developer of hyper‑scale data centres across the Asia‑Pacific. The proposed site, currently home to a 24,000‑head feedlot owned by Wambo Cattle Company, sits 37 kilometres north‑west of Dalby.
While the location offers strategic proximity to major regional power stations, the proposal arrives amid growing national concern over energy consumption and water security linked to the rapid expansion of data centres. The federal government is refining new national rules that would require data centres to purchase renewable energy, part of a broader effort to manage the sector’s environmental footprint.
In Southern Queensland, the Toowoomba Regional Council has pushed for safeguards to ensure data centres do not threaten local drinking‑water sources. Councillor Rebecca Vonhoff said the council took a national lead by passing a motion to protect critical water infrastructure.
“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.
As Australia debates how to balance AI‑driven growth with environmental responsibility, the Western Downs proposal signals just how quickly the digital economy is reshaping regional landscapes and how urgently communities are seeking clarity on its long‑term impacts.
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