AGP Zerra plans $10.4B Queensland centre

AGP Sustainable Real Assets' data centre unit, Zerra DC, has filed plans for a 1.44-gigawatt campus in rural Queensland, with an estimated construction cost of A$14.5 billion ($10.4 billion). The proposal, submitted to the Queensland government, outlines four 360-megawatt data centre buildings on a 726-hectare site near Dalby.

Project Scope

The development application, titled Western Downs Digital Park, calls for four 360-MW data centre buildings to be built in stages over a 726-hectare (1,793-acre) site. Construction is expected to take four to six years. The master plan and economic study specify 1.44 GW of capacity, while technical appendices describe a design for six 360-MW buildings totalling 2.16 GW. The proposal is listed on the project website, which can be viewed in the fixtures section.

Power and Water

The campus sits 37 kilometres northwest of Dalby, close to three gas-fired power stations, a solar farm and the Braemar transmission substation. It will connect directly to Queensland’s high-voltage transmission network through customer-owned switching stations operating at 275 kV and 330 kV, rather than drawing from the local distribution system. The facilities are described as 100 percent air-cooled, eliminating evaporative cooling. Water sources include rainwater, recycled water, processed water from nearby gas operations and an existing dam. Construction would require 522 kL of water daily, compared with 16.5 kL for regular operation. The project’s technical appendices note that the campus would need 522 kL of water per day during construction, while operational consumption would be 16.5 kL.

The power and water strategy is a key issue for residents, as highlighted by Western Downs mayor Andrew Smith, who said the applicant will need to address water concerns.

Economic Impact

An economic assessment by consultancy Urbis estimates that the completed campus could support 1,400 direct operational jobs and contribute A$760 million a year to Queensland’s economy. The main planning report also estimates that the proposal would deliver A$31.9 billion in private capital investment. These figures are available in the stats section.

The campus would by itself roughly match Australia’s estimated 1.4 GW of live data-centre capacity in 2025. CBRE forecasts that the country could face a supply shortfall of between 700 MW and 1.7 GW by 2028 as demand for cloud computing and AI infrastructure outpaces development.

Political Context

The proposal arrives amid a clash between federal and state governments over planned national standards for large AI data centres. Federal authorities want new facilities to underwrite additional renewable generation and firming capacity, pay the grid costs they create and minimise water consumption. Queensland favours a technology-neutral framework that would allow continued reliance on coal and gas. The project remains subject to local and state approvals and would be delivered progressively as demand materialises.

AGP unveiled Zerra in January as a rebranding of the group’s data-centre business, focusing on developing and operating hyperscale campuses across Australia and the wider Asia-Pacific region. The launch followed a strategic preferred investment of up to $650 million from US infrastructure fund manager Stonepeak. At the time of the 2023 investment, AGP had invested in 310 MW of data-centre capacity through a $2 billion India joint venture with Stonepeak-backed operator Digital Edge and the country’s National Investment and Infrastructure Fund.

The proposed Western Downs campus would be delivered progressively as demand materialises, with no customer identified, financing package disclosed or construction start announced yet.