AirTrunk proposes AUD 3.7bn NSW data centre with AUD 37m community offer

September 21, 2026 at 9:01 PM GMT+8

AirTrunk is promoting a proposed 540MW data centre in the Hunter region, alongside a package of community infrastructure and energy benefits it believes will address concerns over the project’s local impacts. The hyperscale data centre developer is proposing to build the facility on the former Hydro Aluminium smelter site at Hart Road, Loxford, near Kurri Kurri.

The project is reported to represent an investment of approximately AUD 3.7bn and would create hundreds of ongoing local jobs, alongside thousands of construction positions. According to AirTrunk’s project website, the proposed facility would comprise a two-storey building covering approximately 44,220 square metres, with a height of around 16.8 metres. The site is more than 500 metres from the nearest residential property and is located in an established industrial area.

AirTrunk said this month that it had lodged an Environmental Impact Statement (EIS) for the project, although the NSW Planning Portal continues to list the State Significant Development application as being at the “Prepare EIS” stage, with the environmental assessment not yet shown as being on public exhibition.

The project will therefore remain subject to the NSW planning and environmental assessment process, including public exhibition, responses to submissions and a final determination.

Community infrastructure offer

AirTrunk has submitted a draft offer to Cessnock City Council to contribute more than AUD 37m towards district infrastructure. The proposed contribution includes more than AUD 12m towards the council’s broader-catchment share of the proposed Loxford District Sporting Facility and Multipurpose Community Facility.

The offer is described as a draft proposal rather than a confirmed planning agreement or completed payment. AirTrunk has also proposed a Community Energy Program, supported by investment in a community battery and being developed through a partnership with Origin Energy.

Subject to approvals and finalisation of the partnership agreement, eligible households in Kurri Kurri and surrounding areas would receive a AUD 200 annual deduction on their electricity bills. AirTrunk says the initiative is intended to allow nearby households to share in the benefits of locally stored renewable energy.

Power and water

AirTrunk says it will fund the full cost of its grid connection and the construction of a new substation at the site. The proposed facility would connect through a 132kV power line, with the company stating that the project will support new renewable generation, including projects in the New England Renewable Energy Zone.

AirTrunk has also said it will use air-based cooling and will not draw on the community water supply for cooling. The project website says water use would be limited to facilities such as toilets, kitchens and cleaning.

The company says the site’s industrial history, existing infrastructure and proximity to renewable energy developments make it suitable for the project. The power arrangements will be an important issue for the environmental assessment, particularly as electricity network capacity and the cost of new connections are increasingly significant considerations for large data centre developments.

Local jobs

AirTrunk is forecasting more than 350 ongoing local jobs, alongside several thousand additional positions during construction. The company says opportunities could span engineering, electrical and mechanical services, facilities operations, maintenance, security, cleaning, transport and other support services.

It also plans to work with local suppliers and regional education and training providers on apprenticeships, work experience and career pathways.

Community consultation

AirTrunk said it has spent recent months meeting Kurri Kurri residents, local organisations and businesses to discuss concerns about power, water, employment and infrastructure. The company has hosted community consultation sessions and is continuing engagement with local groups, businesses and training providers.

It will operate a community drop-in centre at the Kurri Kurri Visitor Information Centre, 199 Lang Street, throughout October. The centre is scheduled to open on Tuesdays, Wednesdays and Thursdays from 10am to 2pm, with no appointment required. AirTrunk’s project website states that the proposal has not yet been approved and outlines the remaining assessment stages.