A massive new data centre proposed for the former Hydro Aluminium Kurri Kurri Smelter site is set to become one of the Hunter’s biggest electricity users, with the project expected to consume up to 540 megawatts of power.

Plans lodged for the Hart Road, Loxford development outline a state-of-the-art data centre featuring multiple data halls, office space and supporting infrastructure, connected to the existing 132kV Ausgrid transmission network via two new substations.

The proposal has already sparked discussion over where the enormous amount of electricity required to operate the facility around the clock will come from.

Although the site sits alongside the Kurri Kurri Power Station, that facility was built as a gas-fired peaking plant, designed to operate during periods of high electricity demand rather than provide continuous power. This means the data centre would likely rely heavily on the broader NSW electricity grid.

To put the demand into perspective, the proposed facility’s 540MW electricity requirement is equivalent to around one-fifth of the generating capacity of Bayswater Power Station near Muswellbrook, one of NSW’s largest coal-fired power stations, which has a capacity of approximately 2,715MW.

Energy experts have previously warned Australia’s rapidly expanding data centre industry could place increasing pressure on electricity networks if new generation capacity does not keep pace with demand. Some studies have suggested wholesale electricity prices could rise if large new electricity loads rely on existing coal and gas generation rather than new renewable energy projects and supporting infrastructure.

Supporters of the development say the project would help diversify the Hunter economy, attract high-tech investment and create jobs during construction and operation. Others argue major energy users should contribute to funding new electricity infrastructure and generation to minimise impacts on households and businesses.

The development’s scoping report is currently under assessment by the Development Services team, with Council submissions expected to be made available to councillors following the formal review process.

The proposal is expected to generate significant community interest as planning and environmental assessments continue.

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