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Bowen Basin Index

$31.9B Western Downs Digital Park Proposed Near Dalby as AI Infrastructure Push Reaches Regional Queensland

By Bowen Basin Index

Project Watch Development Application Lodged Digital Infrastructure Western Downs
Fresh development • 24 August 2026
Regional Queensland mega-project

$31.9 billion.
725 hectares. More than a gigawatt of proposed AI computing capacity.

Singapore-based developer Zerra DC has lodged plans for the Western Downs Digital Park, a proposed hyperscale digital and energy precinct about 37km north-west of Dalby.

The initial proposal includes four AI-ready data-centre buildings, each designed around approximately 360MW of IT capacity, creating a combined initial capacity of about 1.44GW.

Longer-term planning has identified potential expansion beyond 2GW.

But the engineering question behind every other number is even bigger: how do you power something this large?
$31.9 billion proposed Western Downs Digital Park AI data centre campus near Dalby
BBI Project Watch — Western Downs Digital Park is proposed as a major staged digital-infrastructure campus near Dalby.
Planning Active
A development application has been lodged with Western Downs Regional Council. The project remains proposed and subject to assessment and approvals. Project Information ↗
Digital Wire
$31.9B proposed full build-out 725.5ha site 37km north-west of Dalby 4 × 360MW initial buildings ~1.44GW initial IT capacity 2GW+ longer-term potential ~540MVA staged electrical design AI-ready infrastructure Power + buildings + fibre + cooling $31.9B proposed full build-out 725.5ha site 37km north-west of Dalby 4 × 360MW initial buildings ~1.44GW initial IT capacity 2GW+ longer-term potential ~540MVA staged electrical design AI-ready infrastructure Power + buildings + fibre + cooling
Mega-Project Pulse A digital project at this scale quickly becomes a power, civil, electrical and regional-infrastructure project.
$31.9B Proposed Full Build-Out
725.5ha Site Area
1.44GW Initial IT Capacity
4 × 360MW Initial Buildings
540MVA Staged Electrical Design
Why this project is different Data centres are often discussed as technology assets. At 1.44GW of initial IT capacity, Western Downs Digital Park becomes an industrial infrastructure story involving power generation, transmission, substations, cooling, concrete, fibre and logistics at enormous scale.

Four enormous data-centre buildings form the initial proposal

The Western Downs Digital Park is proposed for 1933 Dalby–Kogan Road on a site covering approximately 725.5 hectares.

Zerra’s lodged development application provides for a staged campus containing up to four initial AI-ready data-centre buildings.

Each building is proposed at approximately 360MW of IT capacity.

Combined, that gives the initial four-building campus approximately 1.44GW of IT capacity.

Broader planning material has also contemplated future expansion beyond that initial configuration, potentially taking the campus above 2GW.

Project-value clarification: the approximately $31.9 billion figure should be described as a proposed full-build-out investment. It is not a $31.9 billion construction contract, committed expenditure or currently awarded works program. The project remains at development-application stage and would be delivered progressively if approvals, commercial commitments, energy arrangements and investment decisions support development.
Western Downs Digital Park location approximately 37 kilometres north-west of Dalby near major Queensland power infrastructure
BBI location graphic — the proposed site sits in the Western Downs energy and industrial region north-west of Dalby.
Location is part of the engineering strategy

Why build an AI campus near Dalby?

The Western Downs is already one of Queensland’s most concentrated energy-producing regions.

Zerra says the site was selected partly because of its proximity to major electricity infrastructure, including the Braemar substation.

The broader district contains gas-fired generation, solar generation, battery-storage development and established transmission infrastructure.

For a computing campus capable of demanding power at industrial scale, proximity to energy infrastructure can be more important than proximity to a capital-city CBD.

The central engineering question: how do you power it?

Data centres convert enormous quantities of electricity into computing capacity.

Zerra states that Western Downs Digital Park would connect to the Queensland electricity system and that it is evaluating a range of supply arrangements.

These may include direct or contracted supply from existing regional generation infrastructure alongside new generation and storage.

The lodged electrical design provides for approximately 540MVA of total facility demand for each development stage.

The 1.44GW question Reliable AI computing requires far more than simply connecting a powerline to a building.
Supply Generation Grid and contracted electricity supply must scale with staged development.
Connection HV infrastructure Substations, transformers, transmission connections and switchgear.
Stability Battery-backed conditioning Power-quality and backup infrastructure supports sensitive computing loads.
Continuity Resilience Data-centre operations require highly reliable electrical architecture.
Simplified infrastructure flow Generation → grid → substation → data halls → AI compute
01 Energy supply Existing and future generation provides electricity into the regional system.
02 Transmission High-voltage infrastructure moves large blocks of power.
03 Substations Transformers and switchgear convert and distribute facility power.
04 Data halls Power distribution, cooling and resilience systems support server equipment.
05 AI compute Electrical energy is ultimately converted into high-density computing output.
Scale in one frame

The numbers explain why this is more than a building project

A 725.5-hectare campus with 1.44GW of initial IT capacity requires infrastructure normally associated with major industrial precincts.

Power supply is only one part.

The site also needs roads, drainage, large building structures, mechanical cooling, telecommunications, security, water systems, power-conditioning equipment and extensive commissioning before a single server hall can operate at scale.

Western Downs Digital Park project snapshot showing proposed $31.9 billion full build-out 725.5 hectare site 1.44GW initial capacity and 540MVA electrical infrastructure
BBI Project Watch summary of the proposed campus scale and key infrastructure metrics.

A data centre this large becomes a multi-discipline construction market

Select a project layer below to see how the opportunity extends well beyond server hardware.

Site development Hundreds of hectares have to become an operating industrial campus

Bulk earthworks, internal roads, drainage, site preparation, foundations, laydown areas, utilities and heavy construction logistics would underpin each stage of development.

Electrical infrastructure High-voltage capability becomes one of the project’s defining construction packages

Substations, transformers, switchgear, protection, cabling, transmission interfaces, battery-backed conditioning and resilient power-distribution systems sit between the grid and computing equipment.

Vertical construction Data halls combine heavy building work with precision mechanical systems

Concrete, structural steel, roofing, enclosed data halls, administration buildings, mechanical cooling systems, pumps, pipework and specialist fire and safety systems would form part of the physical campus.

Connectivity A hyperscale computing campus ultimately succeeds or fails on power and data connectivity

Fibre routes, telecommunications systems, controls, monitoring, security, commissioning and network infrastructure would connect the physical facility with Australia’s wider digital economy.

Contractor workstreams to watch as the application progresses

01
Bulk earthworks Site preparation, cut and fill, platforms and construction staging.
02
Roads & drainage Internal access, pavement, stormwater and heavy-vehicle routes.
03
Building construction Data halls, operations buildings, administration and support structures.
04
Concrete Foundations, slabs, equipment bases and major structural works.
05
Structural steel Building frames, platforms, supports and modular construction.
06
HV substations Transformers, switchgear, protection and high-voltage connections.
07
Electrical distribution HV/LV systems, cabling, busways and resilient facility power.
08
Battery & conditioning Battery-backed power conditioning, UPS and supporting systems.
09
Mechanical cooling Air cooling, closed-loop liquid systems, pumps and heat rejection.
10
Water & wastewater Storage, treatment, recycling, drainage and utility systems.
11
Fibre & telecommunications High-capacity data connectivity, communications and controls.
12
Fire systems Detection, suppression, emergency systems and life safety.
13
Security Perimeter systems, surveillance, access control and monitoring.
14
Construction logistics Heavy transport, laydown, cranes, materials and workforce movement.
15
Accommodation Temporary workforce accommodation and regional support services.
16
Commissioning Electrical, controls, cooling, communications and integrated systems testing.
Contractor-market context: these workstreams represent capability areas associated with development of a hyperscale data-centre campus and supporting infrastructure. They are not confirmation that each scope has been released for tender. Western Downs Digital Park remains at development-application stage, and future procurement would depend on approvals, detailed design, project staging, customer commitments, energy arrangements and investment decisions.

Cooling does not automatically mean enormous water consumption

Water use has become one of the biggest public questions surrounding large AI data centres.

Zerra’s current project information states that the first building is being designed around predominantly air-cooled technology supported by a closed-loop liquid-cooling system.

21kL/day Current modelled operational water requirement — first building

Rainwater capture and reuse form part of the water strategy

Zerra currently models approximately 21kL/day of operational water demand for the first building.

Of that amount, the project website states approximately 8kL/day is intended to be recycled and reused on site, leaving around 13kL/day of remaining raw-water requirement.

The design includes approximately 35,000m² of rainwater catchment.

Zerra notes that these figures remain subject to refinement during detailed design and approvals.

What is confirmed — and what remains proposed?

Confirmed in current project material
  • Development application lodged.
  • Site at 1933 Dalby–Kogan Road.
  • Approximately 725.5ha.
  • About 37km north-west of Dalby.
  • Four initial AI-ready data-centre buildings.
  • Approximately 360MW IT capacity per building.
  • Approximately 1.44GW total initial IT capacity.
  • Staged electrical design around 540MVA per development stage.
  • Battery-backed power-conditioning infrastructure proposed.
  • Air-cooled / closed-loop cooling approach.
  • Proximity to major regional electricity infrastructure.
Still to be determined
  • Development approval outcome.
  • Final project staging.
  • Final full-build-out configuration.
  • Final capital expenditure.
  • Customer commitments.
  • Electricity-supply agreements.
  • Network augmentation requirements.
  • Final construction timetable.
  • Major contractor appointments.
  • Individual procurement packages.
  • Timing of expansion beyond 1.44GW.
BBI Project Watch Assessment

A $31.9B AI proposal quickly becomes one of Queensland’s biggest industrial-infrastructure questions

The headline number is extraordinary.

But the most important part of Western Downs Digital Park may not be the servers.

It is everything required to make those servers possible.

A campus of this scale requires massive electrical capacity, substations, transformers, resilient power architecture, kilometres of cabling, building structures, cooling systems, fibre, roads, drainage, water systems, security and commissioning.

It also raises a question that will follow the project through every stage of assessment: where does the electricity come from, and how can such a large new load be added without compromising affordability or reliability elsewhere?

The Western Downs is unusual because it already combines substantial gas generation, renewable generation, transmission infrastructure and emerging battery-storage capacity in one regional energy precinct.

That explains why a global data-centre developer is looking beyond Brisbane and toward Dalby.

For contractors, however, the project remains an early-stage opportunity rather than an active $31.9B construction program.

The next commercial signals will be approvals, power agreements, customer commitments, staged investment decisions and the first major enabling or electrical packages.

What industry should watch next

Development-application progression
Public notification period
Council assessment
State referral requirements
Power-supply strategy
Grid connection arrangements
Braemar substation interface
540MVA stage infrastructure
Transformer procurement
HV switchgear
Battery / conditioning package
Civil enabling works
Bulk earthworks
Road and drainage contracts
Data-hall construction packages
Structural steel
Mechanical cooling systems
Fibre connectivity
Workforce accommodation
Major contractor appointments
The question for Queensland If a 1.44GW AI campus is built in the Western Downs, what becomes the hardest infrastructure constraint?

Power availability is the obvious answer — but transmission, transformers, water, construction workforce and fibre capacity all have to scale with it.

Generation Transmission Transformers Cooling Water Workforce Fibre Grid stability
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Sources

  1. Western Downs Digital Park — Official Project Information
  2. Data Center Dynamics — Zerra DC files plans for large data center campus in Queensland, 24 August 2026
  3. ABC News — International developer plans major data centre in regional Queensland, 24 August 2026
  4. Your Neighbourhood — Western Downs Digital Park development application overview, 24 August 2026
  5. Western Downs Regional Council — Development and planning information
Disclaimer: Bowen Basin Index provides project, development, procurement and industry information based on publicly available information current at the date of publication. Western Downs Digital Park is a proposed digital infrastructure development by Zerra DC and remains subject to relevant local and State planning assessment and approval processes. A development application has been lodged with Western Downs Regional Council for land at 1933 Dalby–Kogan Road in the Western Downs region. Public project material describes the proposed development site as approximately 725.5 hectares and approximately 37 kilometres north-west of Dalby. References to approximately $31.9 billion relate to the proposed full-build-out investment associated with the broader Western Downs Digital Park concept. This figure should not be interpreted as an awarded construction contract, committed capital expenditure, guaranteed project spend or value currently available to contractors. Actual capital expenditure would depend on project staging, approvals, detailed design, customer commitments, electricity-supply arrangements, procurement strategy and future investment decisions. The lodged proposal includes four initial AI-ready data-centre buildings of approximately 360MW IT capacity each, representing approximately 1.44GW of combined initial IT capacity. Longer-term planning material has identified potential expansion beyond the initial four-building configuration and beyond 2GW of capacity. Such future expansion remains conceptual and should not be interpreted as approved, funded or committed development. Public project information states that the electrical design is staged, with each development stage designed to accommodate approximately 540MVA of total facility demand. The 540MVA figure is an electrical design capacity and should not be interpreted as continuous electricity consumption. Actual electricity demand would depend on the number of buildings operating, customer occupancy, utilisation and final electrical configuration. Zerra states that Western Downs Digital Park would connect to the Queensland electricity system and that a range of supply arrangements is being evaluated, potentially including direct or contracted supply from existing regional generation infrastructure together with new generation and storage. Bowen Basin Index does not state that any particular gas, solar, battery, transmission or generation asset has been contracted to supply Western Downs Digital Park unless specifically announced by the relevant parties. References in this article to earthworks, roads, drainage, building construction, concrete, structural steel, substations, transformers, switchgear, electrical distribution, BESS or power conditioning, mechanical cooling, water and wastewater systems, fibre, telecommunications, fire systems, security, logistics, accommodation and commissioning describe capability areas associated with development of a hyperscale digital-infrastructure campus. Bowen Basin Index is not stating that each identified workstream is currently available as an open tender or subcontract package. Individual procurement packages, contract values, contractors, delivery methods, supplier requirements and construction schedules remain to be determined. Public project material currently describes a predominantly air-cooled approach supported by closed-loop liquid cooling, rainwater harvesting and water reuse. Current water-use figures are based on project modelling and may change during detailed design and planning assessment. The development application, infrastructure configuration, building capacities, project cost, energy requirements, water requirements, construction timetable and future expansion plans may be amended during assessment and detailed design. BBI editorial graphics used in this article are illustrative and should not be relied upon as official engineering drawings, electrical single-line diagrams, final site layouts, transmission routes, construction documentation or confirmation of contract opportunities.
Project information reviewed against Western Downs Digital Park project material, planning reporting and public development information current to 30 August 2026.

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