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Exclusive-Australian outback data centre pulls timeline after regulator stalls

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In short

Startup Energy North abandoned its mid-2028 operational target after the Northern Territory Environment Protection Agency suspended assessment deadlines on October 7. The regulator identified 10 major risk factors across the planned 191-square-kilometre campus, citing inadequate mitigation plans for sacred Aboriginal sites and water networks. Energy North intends to establish a revised operational timeline only after the government finalizes guidelines for an environmental impact statement. The setback highlights mounting hurdles for regional leaders attempting to manage roughly a dozen data centre bids that collectively exceed the territory's existing power infrastructure.

Key points

  • Regulatory intervention reflects growing official scrutiny over how massive computing inf…: Regulatory intervention reflects growing official scrutiny over how massive computing infrastructure affects local water resources and Aboriginal sacred grounds.
  • Combined power demands from Project Ares and another local proposal would exceed the Nort…: Combined power demands from Project Ares and another local proposal would exceed the Northern Territory's peak electrical grid capacity tenfold.
  • Project developers cannot establish a viable commercial operational schedule until enviro…: Project developers cannot establish a viable commercial operational schedule until environmental impact terms are formally released.

Sources checked by our analysis pipeline: 1

DARWIN/SYDNEY, Nov 2 : The developer of one of Australia's biggest planned data centres scrapped its target start date after a regulator said it needed longer than usual to set environmental parameters, a setback to the country's ambitions to be a fast-track destination for AI investment.

Startup Energy North, which says it has finance lined up for a sprawling gas and solar-powered data centre on a cattle ranch in the country's remote north, 683 km (424 miles) from the nearest city, had given a "first power" date of June 28, 2028, in regulatory filings four months ago.

But after the Northern Territory environment regulator said in an October 7 ruling it was suspending its seven-week deadline to decide what hurdles the project must clear, the developer told Reuters it had scrubbed its timeline.

"The June 2028 date in our referral was an indicative schedule at the time of lodgement, and we're no longer working to it," said Energy North vice president of project development Daniel Hunter in an email.

The project is the biggest in Australia to put back its…

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