Australia’s multi-billion dollar energy link to Asia will focus on local data centres for now

[SYDNEY] The US$24 billion renewable energy project that seeks to link Australia and Asia will focus on supplying local data centres for now, with a proposed power cable to Singapore seen as a longer-term option.

Billionaire Mike Cannon-Brookes’ SunCable project will concentrate on building solar and storage capacity to serve customers in the Northern Territory, including data centres from the end of this decade, the company said. Electricity exports to Singapore would follow in the mid-2030s, it said.

“The energy-hungry digital sector will be one of the first movers in the transition to large-scale renewable power supply,” SunCable said. “The Northern Territory offers a compelling proposition for sustainable data precincts: abundant renewable energy, existing fibre optic connectivity, land availability, and proximity to key regional markets.”

The Australian Financial Review earlier reported the increased local focus. The development is one of the most ambitious global efforts to supply power-hungry Asian economies that lack the land to generate enough clean energy. SunCable’s Australia-Asia Power Link plans to send 1.75 gigawatts of renewable electricity, about 9 per cent of Singapore’s current demand, via a 4,300-kilometre subsea cable.

A revised plan outlined in August targeted a final investment decision in 2027 and first exports in the early 2030s. Singapore granted conditional approval to the proposal in October. BLOOMBERG