Latrobe City Council has welcomed the recent announcement of a proposed $10 billion data centre for Morwell by Singapore-based global asset manager and operator, Keppel.
If delivered, the proposed data centre would be the largest of its kind in Australia and will unlock long-term opportunities for the local economy, the Council said in a statement.
“Latrobe City has powered Victoria for generations and is now uniquely placed to support the next era of industry, including data, digital and clean-energy-enabled infrastructure,” said Mayor, Sharon Gibson.
“Our existing transmission assets, industrial land, water access, freight connectivity and incredible skillset make the region a nationally significant location for large-scale, energy-reliant investment; we’re here and we’re ready to grow.”
Keppel has secured a lease of industrial land in Morwell from Australian energy and infrastructure landowner, Lightwood Group.
The selected site (pictured) is 123-hectares and is located near the former Hazelwood Power Station. With the previous infrastructure in place, the site is appropriately zoned and was identified as a unique location due to its direct access to the power grid and existing non-drinkable water source which is required for the operation of the data centre.Â
With the closure of coal-fired power stations and associated industries announced for 2028 and 2035, investment of this nature is critical to providing certainty for the local workforce and creating new pathways for skilled workers, the Council said. Projects that leverage existing energy infrastructure while supporting new industries are essential to our economic and environmental diversification, it said.
“As State and Federal governments progress Net Zero commitments, Latrobe City is well positioned to remain the epicentre of the energy economy — supporting renewable generation, stable and continuous energy, hydrogen and emerging industries that rely on secure, large-scale power supply,” said Council.
Keppel have advised that they would like to brief Council on the proposal in the future and will deliver further information in relation to the significant investment and employment opportunities that this proposal would deliver to the region.
Council says it looks forward to receiving a planning application for the proposal that Keppel are also preparing and they will be required to implement controls to address any impacts on adjoining landowners.
Keppel Connectivity CEO, Manjot Singh Mann said, “Digitalisation and AI are reshaping global compute needs, and Keppel is positioning ahead of this megatrend by investing upstream to secure early and exclusive access to power, water, and fibre connectivity at strategic sites in key datahubs. Our powerbanking strategy enables us to deliver shovel-ready capacity at speed and scale, significantly shortening time to development and service readiness, and without overburdening our balance sheet.”
“We are in active discussions with hyperscalers and neoclouds regarding the future capacity provided by the site, many of whom have expressed keen interest in Melbourne – one of Australia’s fastest-growing data centre markets. The site near Morwell offers significant scalability, with clear pathways to securing competitively priced green power, non-potable water for cooling, and low-latency fibre connectivity, making it a compelling location to site next-generation AI campuses,” he said.
