Locals Fear Big Data Centre Will Use Water from Stressed River Murray

ABC Riverland

Topic: Regional Development and Planning

Thursday, 18 June 2026, at 1:03 pm

Clayton Heinrich is a farmer in South Australia. His farm is near the Bundey electrical substation.

In short:

A big data centre is planned for South Australia. It will be one of the largest in the Asia Pacific.

Locals are worried about the data centre using water from the River Murray.

What's next?

The Australian tech company IREN has signed a deal. It hopes to start the data centre by 2028.

Clayton Heinrich has owned his farm for over 40 years. It is in the Mid North of South Australia.

He said his plans are now uncertain because of the data centre.

He used to take people to his farm to see the stars. But now, he's not sure if he can do that anymore.

The Bundey substation is important for Australia's energy market.

It is near Clayton Heinrich's farm and will support the data centre.

The data centre will use the substation's infrastructure. It will be an 800-megawatt project.

Clayton Heinrich was surprised by the news. He didn't know about the data centre before.

What is known about the project

Data centres store and manage digital data. They are being built in many places.

The Bundey data centre has not been formally approved yet.

If it is approved, it will be one of the biggest in the Asia Pacific.

The company behind the project, IREN, says it will create 200 jobs.

IREN operates data centres in many places, including North America.

The data centre will use a closed-loop cooling system. This means it will not use much water.

The system will use a small amount of water, like a few swimming pools.

But, the system still needs some water to work properly.

The data centre is in a semi-arid area. There are farms and livestock nearby.

We don't know how much water data centres use. We need to find out.

IREN says it will use very little water after the initial fill.

Water source concerns

There are worries about where the water will come from.

The River Murray is an important source of water. But, it is stressed.

The pipeline that supplies water to the area is already being used.

The pipeline gives water to many homes in the Mid North, Yorke Peninsula, and Eyre Peninsula.

Teresa ter Bogt is worried about the data centre using water from the River Murray.

She is part of a local conservation group.

Any development that takes water from the river is a concern.

When there is a drought, the river's water is cut back.

The River Murray is important for the environment and the community.

Locals feel 'left in the dark'

The town of Morgan is near the data centre. The locals are worried.

They didn't know about the data centre until recently.

They are worried about the impact on their town and the environment.

Tori Widmer is worried about the data centre's effect on housing.

The data centre will bring many workers to the area.

There is already a shortage of rentals in Morgan.

Henry Schutz is worried about the data centre's impact on national security.

He thinks the data centre could be a target.

The government is working with IREN on the project.

The state government says it is a good opportunity for jobs and investment.

IREN is happy with the government's response.

The company wants to work with the local community.

It plans to support more renewable energy as the project grows.

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