$10 Billion AI Hub Planned Near Hazelwood Power Station in Victoria
Australian Financial Review
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Details
- Date Published
- 16 Jan 2026
- Priority Score
- 2
- Australian
- Yes
- Created
- 16 Jan 2026, 06:00 am
Description
It’s the latest in a series of high-profile, multibillion-dollar commitments in a race to meet the AI-driven surge in demand for digital infrastructure.
Summary
Singaporean asset manager Keppel plans to develop a $10 billion data centre hub near the former Hazelwood power station in Victoria, representing a significant investment in AI-driven digital infrastructure. This project is notable as it aims to establish what could become one of the largest AI infrastructure sites in Australia. The partnership with Lightwood Group highlights the pursuit of adequate resources, including power and water, for running extensive data operations. While the article focuses more on infrastructure development, the implications for AI safety and governance are indirect, highlighting the growing demand for digital capabilities that support AI advancements.
Body
PropertyCommercialData centresPrint articleNick LenaghanProperty editorJan 16, 2026 – 12.06pmSingaporean asset manager Keppel is planning a $10 billion data centre hub near Victoria’s former Hazelwood power station, confident it can secure the power and water it needs to run what could become the largest site of the key artificial intelligence infrastructure in Australia.The mega deal has been struck with Australian infrastructure player Lightwood Group and will give the Singaporean giant rights to lease a 123-hectare site near Morwell, in the heart of Victoria’s brown-coal-fired energy generation system.Loading...Nick Lenaghan edits the property section, which covers all aspects, from residential real estate and housing and construction to commercial property – office, retail, industrial – and major ASX-listed developers and real estate investment trusts. Connect with Nick on Twitter. Email Nick at nlenaghan@afr.comSaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreData centresAICommercial real estateFetching latest articles