Nationals MP David Littleproud Calls for Coal-Fired Power Station to Support $32 Billion Queensland Data Centre

Federal Nationals MP David Littleproud has called for the development of a new coal-fired power station in Queensland to help support the energy requirements of a proposed $32 billion data centre hub. The facility, which is still subject to approval by the Western Downs Regional Council, has been proposed for construction near Dalby by Singaporean developer Zerra DC. Artificial intelligence giant Anthropic has already signed its first deal in Australia to use part of the facility, with intentions to begin utilizing the centre starting in 2027.

Mr Littleproud suggested that duplicating the existing 750-megawatt Kogan Creek Power Station could help supply the necessary electricity for the project. According to estimates, the proposed data centre could draw as much power as 1.5 million average Australian households, equating to roughly 25 per cent of Queensland's current daily electricity consumption. In addition to advocating for new coal generation, the Maranoa MP also expressed support for utilizing nuclear power in Queensland to help underpin future electricity supply as technological demands grow.

Addressing community concerns regarding the extensive water resources required to operate the facility, Mr Littleproud stated that the developer assured him in writing the project would consume about six Olympic swimming pools worth of water annually. He noted that while he had received these written assurances, his position would shift if those parameters changed. Furthermore, Mr Littleproud highlighted the projected economic impact of the development, stating the project would create approximately 1,500 jobs during construction and 1,400 ongoing operational roles.

However, the proposal has encountered criticism from other political figures, including Katter's Australia Party MP Robbie Katter. Mr Katter urged the government to prioritize existing regional industries, expressing frustration that regional areas facing energy and water constraints are expected to accommodate major multinational investments without adequate consideration for traditional sectors. He argued that officials should carefully measure the long-term benefits against established providers that have historically supported Queensland.

Mr Katter also raised concerns regarding artificial intelligence regulation, noting that a lack of oversight in the AI sector and warnings from industry leaders generate significant apprehension. He cautioned against rushing major digital infrastructure projects forward without fully understanding their long-term implications, emphasizing that the development demands extreme caution rather than uncritical enthusiasm.

Meanwhile, planning experts have underscored the broader infrastructural implications of the digital boom. Nicole Bennetts, Head of Policy and Advocacy at the Planning Institute of Australia, noted that the sheer size of the Western Downs project illustrates the magnitude of change the country must prepare for. Ms Bennetts pointed out that Australia currently has around 165 operational data centres, with an additional 225 facilities in the development pipeline.

According to projections from the Australian Energy Market Operator cited by the Planning Institute, data centres are expected to account for approximately 13 per cent of Australia's total energy supply by 2036, a substantial increase from three per cent today. In response to this rapid expansion, Ms Bennetts stressed the necessity of upfront strategic planning to manage cumulative impacts on land, infrastructure, and energy grids. The Planning Institute is advocating for a nationally consistent approach to determine appropriate locations for large-scale data centres, moving away from a reactive, proposal-by-proposal process toward proactive national planning for the digital economy.

The proposed data centre project remains under consideration by the Western Downs Regional Council planning team as local officials, industry representatives, and policymakers weigh the immense energy demands and economic opportunities associated with the massive infrastructure investment.