Keppel's $10B Data Center Project in Latrobe Valley Transforms Energy Landscape
The Keppel data center project, approved in January 2026, marks a significant shift in Latrobe Valley's industrial future, projected to support AI infrastructure and create thousands of jobs. This initiative follows the decline of coal power, positioning the region to capitalize on growing demand for data centers.
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In January 2026, Keppel Ltd. received approval for a $10 billion data center project in the Latrobe Valley, Australia, intended to become the largest AI infrastructure site in the country. This project will occupy 123 hectares of industrial land near the former Hazelwood Power Station, which closed in 2017.
The facility aims for a gross power capacity of up to 720 megawatts. The project leverages existing infrastructure, including non-drinkable water sources for cooling and access to the Gippsland Renewable Energy Zone.
The demand for data centers has surged, evidenced by NextDC's $7 billion plant announcement in late 2025. Keppel is in discussions with major cloud providers like AWS, Microsoft Azure, and Google Cloud. This transformation reflects a strategic shift in the region's industrial landscape, replacing coal jobs with technology-driven opportunities.
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