Quantum DC Proposes 1.2 GW Data Center and Energy Hub Near Tungkillo in South Australia

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Quantum DC Proposes 1.2 GW Data Center and Energy Hub Near Tungkillo in South Australia

Updated on Oct 28, 2026, 03:24 PM IST
Written & Edited by Ashish

Quantum DC has proposed a 1.2GW data center and energy hub on a 220-hectare site near Tungkillo in South Australia's Adelaide Hills. The Tungkillo Compute and Energy Hub is planned for 312 Collins Road, approximately 55km east of Adelaide.

 

The site spans five land parcels, with Quantum DC intending to develop around 120 hectares. The project combines hyperscale computing infrastructure with renewable energy procurement and on-site gas-fired generation.

Staged Delivery Timeline

The project would be delivered in three stages. According to the developer, the first stage is anticipated to begin operations in 2028, with full development completed by 2031.

 

Power and Energy Strategy

The proposed facility would connect to existing ElectraNet 275kV transmission infrastructure through two new substations. Quantum DC plans to contract new wind and solar generation from elsewhere in South Australia.

 

The company also intends to build gas-fired turbines on site to firm supply when renewable output is low. The project is designed for wind and solar to supply around 80 percent of the data center's electricity, with on-site gas expected to supply around 20 percent, according to the developer.

 

Local reporting has put the proposed gas-fired generation capacity at 400MW, though Quantum DC's published project description has not specified the capacity. The developer says the hub's on-site generation will also supply electricity into the grid at times.

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Cooling and Water Use

The project will use closed-loop, direct-to-chip liquid cooling with air-cooled heat rejection. Current estimates put operational water consumption at around 20 megaliters annually.

 

Rainwater collected from building roofs is intended to be the main source of operational water, with commercial water deliveries supplementing this where necessary.

Local Opposition and Environmental Concerns

The proposal has drawn opposition from local residents and farmers. Concerns raised include potential effects on the rural landscape, agriculture, wildlife, noise, light, and water resources. Tungkillo sits just within the River Murray Dark Sky Reserve, according to the ABC — an internationally accredited area protected from light pollution.

Approval Status

Quantum DC intends to lodge a development application through South Australia's Essential Infrastructure/Crown assessment pathway. To date, no application has yet been lodged, and the proposal has not received approval.

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