By Sam Parry

ABC Rural

Topic: AI

Monday, 13 July 2026, at 7:08 am

A big data center called Project Ares is planned for the Northern Territory's Barkly region.

The Northern Territory seems far from the fast development of artificial intelligence.

But the NT may soon be at the center of the AI industry with 12 data center investors looking at Australia's most remote area.

Why did these companies choose the NT, and is it ready for an AI boom?

The NT has a lot of sun and gas.

Jason Finlay says the NT's sunny weather and gas are attractive to AI companies.

Vantage North Group has former NT government workers and helps gas companies and data center builders.

Jason Finlay says the NT's location and resources make it attractive to developers.

The Beetaloo's gas can provide stable power for data centers.

One proposal said 1 gigawatt of power is needed to run at full capacity.

This is more than three times the power used in the Darwin-Katherine area in 2024-25.

A computer image shows SunCable's proposed solar farm in the NT, linked to a data center plan.

Solar power can be used, but companies prefer gas for a cheaper option.

The NT has some of the best sun in the world, says Mr. Finlay.

Mr. Finlay is excited about the prospect of what the NT has.

It brings together many key resources in a unique way.

A gas exploration site is in the Beetaloo Basin.

There are environmental concerns.

Greenpeace is worried about the use of gas and wants a pause on data centers.

Governments should ensure development does not outpace planning.

Greenpeace says the rush to build data centers could hurt Australia's move to renewable energy.

Data centers could use 13% of the country's electricity by 2040.

These new data centers need a lot of energy and often use gas or fossil fuels.

Greenpeace's report says data centers use a lot of water.

A proposed data center in the NT would use up to 4 gigalitres of water each year.

The proposed 'Project Ares' would be built by Energy North on Murranji Station.

Sydney Water expects data centers to use a quarter of Sydney's water by 2035.

There are no laws to limit gas use in data centers powered by a mix of gas and renewables.

Laws should be introduced to make data centers use only new renewable energy.

Even with a renewables-only rule, the NT would still be attractive to builders.

The federal government is considering its options, and AI will be a big part of Labor's conference.

The party may expand its policy to oversee safety risks and manage electricity and water demand.

The Malaysian state of Johor is becoming a hub for data centers.

Asian proximity

Developers like the NT because Singapore is tightening rules to prevent data centers from using too much power.

Many think technology is moving too quickly for authorities to keep up.

Darwin is attractive because it is close to undersea cables that connect Australia to South-East Asia.

If you build data centers in Singapore, you have to import energy, but if you build in the NT, you can send data to Singapore.

We have a unique product and a market to our north that will need it.

We will get many projects, which makes me excited.

Monday, 13 July 2026, at 7:08 am

Monday, 13 July 2026, at 10:43 am

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