Anthropic has signed a landmark agreement to lease capacity at a proposed $32 billion, 2.16-gigawatt data center in Queensland's Western Downs, marking its first such infrastructure deal in Australia. Developed by Singapore-based Zerra DC, the Western Downs Digital Park will be used exclusively for AI inference processing. The project has sparked local debate over its reliance on gas-fired power and its impact on regional resources, even as state officials promise the massive investment will generate jobs and lower local energy prices.
Anthropic Queensland data centre deal
- ▪The proposed Queensland data center deal is subject to approval by Australia's Foreign Investment Review Board and the Western Downs Regional Council.
- ▪Anthropic signed an agreement on September 16, 2026 to lease its first Australian data center capacity at a proposed facility in Queensland's Western Downs.
Western Downs facility specifications
- ▪The proposed Western Downs Digital Park, developed by Singapore-based Zerra DC, is estimated to cost between $31.9 billion and $32 billion.
- ▪The Western Downs Digital Park is planned to reach a capacity of 2.16 gigawatts across a 725.5-hectare site, with the first stage projected to open in 2027.
- ▪The Western Downs Digital Park will consist of four buildings, each containing 36,000 square meters of data center floor space.
- ▪Anthropic will use the Western Downs facility exclusively for inference processing to run its Claude model, rather than for training new artificial intelligence models.
- ▪The Western Downs facility will utilize a closed-loop, air-cooled system to minimize water usage, making its consumption comparable to a conventional office building.
Grid connection infrastructure
- ▪Anthropic will cover the full cost of connecting the Western Downs facility to the electricity grid, including any required network upgrades.
- ▪The Western Downs Digital Park will connect directly to the high-voltage grid through the Braemar substation and will feature an on-site battery system.
Renewable energy sourcing
- ▪Anthropic plans to secure long-term power purchase agreements to add new wind or solar renewable energy capacity to the Queensland grid.
- ▪The first stage of the Western Downs Digital Park could be powered by gas, utilizing three existing gas-fired power plants located within two kilometers of the site.
Queensland economic impact
- ▪Western Downs Mayor Andrew Smith stated that the proposed data center project could bring approximately 1,000 jobs to the local region.
- ▪Queensland Premier David Crisafulli stated that the Anthropic investment will deliver more jobs, add energy generation to the grid, and lower power prices for residents.
AI regulatory environment
- ▪Queensland secured an exemption from the Australian federal government's policy that would mandate new AI data centers to be powered exclusively by new renewable energy.
- ▪The Australian federal government is considering a proposal to grant AI companies default access to the works of Australian creative professionals for model training.
Debatable claims
- ▪The Western Downs Regional Council should approve the proposed $32 billion data center
- ▪Australia should require all new data centers to run exclusively on renewable energy
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