A proposed data centre near Dalby, Queensland, is drawing concern because of its scale and what it could mean for local communities and infrastructure. The project is reported as a $31 billion development on a 725-hectare feedlot site, with peak power capacity of 2.16 GW. Those are proposal figures, not proof the facility is approved or will be built.
What is proposed near Dalby?
The proposal became public in September 2026. Singapore-based developer Zerra DC is planning a data centre outside Kogan, near Dalby in the Western Downs, about 180 km west of Brisbane. The site is a 725-hectare property currently occupied by a feedlot with capacity for 24,000 head of cattle, surrounded by coal seam gas wells. The Guardian reports that the $31 billion facility is intended to power Anthropic’s Claude AI model. The Guardian’s report does not establish that the project has development approval.
How much power could it use?
The reported project figure is peak power capacity of 2.16 GW, which The Guardian describes as about one quarter of Queensland’s total energy demand. Peak capacity is not the same as average or annual electricity consumption; the report does not provide a consumption forecast or the underlying calculation for the comparison.
That scale is central to residents’ concerns about whether the project could add pressure to electricity infrastructure and what it might mean for other users. The reviewed report does not confirm a grid connection, power supply contract, or how the facility’s demand would be met.
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What is known about water use?
Zerra DC says its cooling system would use much less water than most existing data centres and that demand would be about equal to that of an average shopping centre. The report provides no water assessment, comparison method, or independent verification, so this remains the developer’s claim rather than an established impact estimate.
What jobs and regional benefits are being claimed?
The company expects thousands of construction jobs and about 1,400 long-term jobs, according to figures reported by The Guardian. These are forecasts, not realised employment outcomes; the report does not provide the assumptions behind them or an independent validation.
Supporters frame the project as a chance to diversify the regional economy. Toowoomba and Surat Basin Enterprise chief executive Jo Sheppard calls it “a once in a generation opportunity for Western Downs region and our broader region”. Dalby mayor Andrew Smith says coal seam gas diversified the economy and created jobs, but argues planning for the data centre should not be rushed; he does not endorse or oppose the proposal.
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Queensland premier David Crisafulli has said the project could bring good regional jobs and, if managed well, lower power bills for other Queenslanders. Those are potential benefits expressed as hopes, not confirmed outcomes.
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Some opponents relate the proposal to the region’s coal seam gas boom and bust, raising concerns about whether a large project will leave durable benefits or impose longer-lasting costs. The Guardian reports that residents have raised questions about energy demand, noise, siting, environmental effects and wellbeing. Local opinion is not uniform: the region’s experience with gas development is also cited by supporters as evidence that resource projects can create jobs and diversify the economy.
Petition co-organiser Mordechai Winters told The Guardian that a petition had received more than 21,500 signatures, mostly from the area, in a few weeks. Environmental Defenders Office chief executive Jo Shulman said enquiries about data centres to the organisation’s free legal advice line had increased 250% since January. Both figures are attributed statements in the report; it does not provide underlying records for independent checking.
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Who will assess the application?
The Queensland government announced on the Friday before The Guardian’s 4 October 2026 report that the state would become the responsible assessor and coordinator of data-centre applications instead of local councils. A spokesperson for Planning Minister Jarrod Bleijie said the intention was a consistent and transparent framework.
The report does not set out the framework, its effective date or transition rules, or confirm the proposal’s formal application status or how the new arrangement applies to it. It also does not establish what environmental or social impact studies have been filed. State coordination does not, on the information available, answer what opportunities residents will have to participate or what assessment criteria will be applied.
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What is still uncertain?
- Approval: The report does not establish whether the proposal has received development approval.
- Power: The 2.16 GW figure is reported as peak capacity; actual consumption, grid connection and supply arrangements are not confirmed.
- Water: The water-use comparison comes from the developer, with no independent assessment described.
- Employment: Construction and long-term job numbers are company expectations, not verified outcomes.
- Timing: The company reportedly aims to begin using the centre as early as 2027, but that is an ambition, not a confirmed delivery date.
For now, the proposal presents a clear choice of questions for the region: whether prospective jobs and diversification justify the infrastructure and local impacts, and whether the state’s assessment process can test the claims transparently before decisions are made.
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