Lead

A proposed $10 billion artificial intelligence (AI) data centre in South Australia has split the local community, with supporters calling it a potential economic lifeline and critics warning of a "catastrophe" for the region's precious water and energy resources. The project, slated for the locality of Bundey in the state's Mid North, has put the spotlight on the rapid expansion of AI infrastructure and its environmental cost.

Coverage Comparison

Across multiple reports by ABC Australia, the focus varies from the broader state strategy to the local, on-the-ground reactions. One report highlights the economic benefits and government backing, framing the project as an "opportunity" for regional South Australia. Another emphasises the environmental and social concerns, using words like "alarm" and "vulnerable." A third report takes a more neutral tone, weighing both the "economic benefits" against the "environmental concerns."

Regardless of the framing, a common thread emerges: the proposed data centre at Bundey, with a capacity of up to 800 megawatts, will be one of the largest in the Asia Pacific region. It promises 200 ongoing skilled jobs and 500 construction jobs, but raises critical questions about the source of its immense power needs and its cooling water supply, especially in a state that is Australia's driest.

The South Australian government, led by Premier Peter Malinauskas, is eagerly courting AI investment. Malinauskas has released a data centre strategy aimed at capitalising on the state's high proportion of renewable energy and a new undersea internet cable connecting Adelaide to Singapore via Perth. He plans to introduce new legislation to "streamlined" the development process, ensuring the state becomes a leader in the AI infrastructure space. In an interview with 891 ABC Adelaide, Malinauskas described it as a "genuine economic opportunity for young people in regional South Australia," asserting that the project could be an uplift for everyone if done correctly and not recklessly.

Key Claims

  • The $10 billion AI data centre is proposed for Bundey, South Australia, to be built "adjacent to" the Bundey substation, a key node in Australia's largest energy transmission project.
  • The centre would require up to 800 megawatts of electricity, enough to power around 800,000 homes, and would be one of the biggest data centres in the Asia Pacific region.
  • Project developer IREN, a Nasdaq-listed tech company, says the centre will create 200 ongoing skilled jobs and 500 jobs during construction. It plans to use a closed-loop cooling system, which circulates coolant in a sealed loop and disperses heat through the air, not through water.
  • Critics, including the Greens, are calling for a moratorium on "hyperscale" developments, worrying about the draw on the River Murray to cool the machines.
  • The South Australian government, led by Premier Peter Malinauskas, has released a data centre strategy and plans to introduce new laws to regulate the industry. It aims to capitalise on the state's renewable energy and undersea internet cable.

Perspectives

Proponents: Economic Opportunity

Supporters, including Premier Peter Malinauskas and Goyder Regional Council Mayor Bill Gebhardt, see the project as a vital boost for a struggling region, bringing hundreds of jobs and new life to communities with declining schools and services. They argue that technological advances have reduced the water needs of modern data centres, calling some criticism "outdated" and "exaggerated."

Critics: Environmental and Community Impact

Opponents, including the Greens and some local residents like farmer Clayton Heinrich, are concerned about the environmental cost, particularly the water drawn from the River Murray and the immense electricity demand. Heinrich, whose farm is three kilometres from the proposed site, described his shock at the project, worrying that his quiet countryside views and lifestyle would be lost. The Greens are calling for a moratorium on "hyperscale" developments until the full impact is understood.

Local Concerns

Mr. Heinrich, who has owned his 1,000-hectare farm in the Mid North for over 40 years, said the once-clear horizon of his retirement property had changed dramatically, and his plans for the future were now uncertain. "I used to get people out here to have a look at the stars… camping out here, but I guess those days may be gone," he said. His sentiments reflect a broader anxiety that the data centre could transform the region's character, not just its economy.