Victoria’s Gippsland region will soon become home to one of the largest pieces of artificial intelligence infrastructure ever proposed in Australia.

Keppel Limited plans to build a 720-megawatt data centre worth $10 billion at a 123-hectare site near Morwell. This is a project that would place the Latrobe Valley at the centre of Australia’s rapidly expanding digital economy.

The scale of the development highlights the growing demand for AI processing power and large-scale data storage. This comes as businesses, governments and consumers increasingly rely on cloud computing and artificial intelligence technologies.

So, why has the site been chosen — and what does the rise of mega data centres mean for Australia’s infrastructure landscape?

Why has the site been chosen?

The site has unique potential for the data industry due to its proximity to one of Victoria’s largest electricity transmission nodes.

“Providers are really looking for locations with power, which is the primary one for Gippsland,” Gippsland-based AI consultant Simon Wilson told the ABC.

“We’ve got the most available transmission power in the grid in the country … so a lot of the big tech providers are eager to take advantage of that and plug their data centres in here.”

When assessing potential locations, data centre operators prioritise access to reliable, large-scale power supply. These facilities are extremely energy-intensive and are typically described in terms of their power capacity. At 720MW, the proposed Hazelwood hub is among the largest data centre projects announced in Australia.

The site was also selected for its access to non-potable water for cooling purposes, as well as low-latency fibre connectivity. These are both critical requirements for modern AI and cloud infrastructure.

What’s driving Australia’s data centre boom?

An estimated 4,000 data centres are currently in operation around the globe, with Australia ranking among the top five markets.

According to Mr Wilson, AI data centres are critical to the operation of Australia’s technology infrastructure.

“When we do a query into Google, or chat with AI … it is done by a data centre,” he told the ABC.

“So it’s really just a massive factory full of computers doing the work that your local computer can’t do.”

The Gippsland project is just one of several major developments in the pipeline across Australia. In late November, approval was granted for a $3.1 billion facility in Sydney’s north-west. There are also plans for a $7 billion data centre at Eastern Creek and a $5 billion facility in Melbourne.

Additional investment in Australian data centre capacity is forecast to reach $26 billion by 2030 as operators expand to meet rising demand.

The Gippsland project highlights more than just Australia’s growing appetite for artificial intelligence. It also signals a significant pipeline of construction work. Developments of this scale require extensive civil works, electrical infrastructure, mechanical services, structural builds and ongoing fit-out by specialised trades. From project managers and engineers through to electricians, concreters and HVAC specialists, large-scale data centres are creating demand for highly skilled construction professionals across multiple disciplines.

As investment in digital infrastructure accelerates, so too does competition for experienced workers. Those who can deliver complex, high-value projects on time and to strict compliance standards are in increasing demand. For construction professionals, this shift represents a major career opportunity. This is especially for those with experience in industrial builds, energy infrastructure or large commercial developments.

Are you looking for a new career? Construction Resumes can help. We are pleased to offer various services including our resume writing service and cover letter writing service.

Article References

Lenaghan, N (16 January 2026) ‘Singaporean giant to recharge Vic energy heartland with $10b AI hub’, Financial Review, accessed 20 February 2026.

Pope, D (22 January 2026) ‘$10 billion data centre planned for Hazelwood in Victoria’s Latrobe Valley’, ABC News, accessed 20 February 2026.