EnergyAustralia proposes converting retired coal plants into AI data centre hubs
EnergyAustralia plans to repurpose its Yallourn and Mt Piper coal power stations as ready-made sites for hyperscale data centres once they close in 2028 and the 2030s. State governments are currently reviewing six separate confidential projects in Tasmania involving 500 megawatts of potential energy use.
EnergyAustralia is pursuing plans to convert its Yallourn coal-fired generator site in the Latrobe Valley into a low-carbon energy hub capable of supporting new hyperscale data centres. The owner stated these sites offer unique features required by high-intensity computing, including water, around-the-clock electricity access, skilled labour, and industrial-zoned land. EnergyAustralia's Mt Piper station in New South Wales is scheduled for retirement sometime in the 2030s, while Yallourn will close on June 30, 2028. Mark Collette, chief executive, argued these locations allow developers to build facilities and connect them to the grid within a couple of years. Chief executive Collette claimed coal power sites offer the exact features required by data centres, including water and around-the-clock electricity needed for high-intensity computing and cooling systems.
Separate developments are occurring in Tasmania where six unnamed companies have proposed setting up data centres. A state government document tabled in parliament reveals two projects are in the feasibility stage, with one located in the north-west requiring 200-300 megawatts of energy. Another project listed as needing 200-300 MW remains in the concept stage. If all six confidential proposals proceed, they would require at least 500 MW of power. One project has expressed interest in a closed manganese smelter in northern Tasmania, Liberty Bell Bay. These new proposals exist alongside Firmus Technologies' three AI data centres currently in Tasmania, which need a combined 444 MW. Additionally, VIRIDIS is establishing a small 1 MW data centre in Burnie with council approval.
