AirTrunk lines up Hunter clean energy projects for Kurri Kurri data centre, but more needed

A hyperscale data centre specialist has signed an agreement with a renewable developer to progress potential clean energy projects to help power its proposed data centre.

AirTrunk has signed an exclusivity agreement with renewable developer European Energy Australia to progress wind, solar and battery projects in the Hunter to help power its proposed $3.7 billion data centre at Kurri Kurri, but the company concedes the projects will not be enough on their own.

The announcement comes a day after public submissions closed on the state significant development application for the former Hydro Aluminium smelter site at Loxford.

The two companies are progressing a 260-megawatt solar project, a battery of more than 800+ megawatt hours and a wind farm of up to 350 megawatts.

All three are proposed for the Hunter-Central Coast Renewable Energy Zone and could add more than a gigawatt of new renewables generation and storage to NSW's electricity system.

The proposed locations of each are yet to be specified by the companies.

The solar farm and battery are expected to begin operating in 2030, with the wind farm to follow in 2032.

European Energy plans to connect them to Ausgrid's upgraded 132-kilovolt network in the zone, subject to final connection arrangements, approvals and technical assessments.

The companies have not signed a power purchase agreement.

They are "discussing a potential long-term power purchase agreement" to support AirTrunk's NSW electricity needs, "including its proposed Kurri Kurri data centre campus".

AirTrunk's associate vice-president for energy, Sabooh Whitelaw, said the company understood the community wanted to know how the data centre's electricity needs would be met.

But she also said more would be needed.

"The Hunter projects are an important step, but more renewable generation and firming will be needed to support Kurri Kurri and AirTrunk's wider NSW needs," Ms Whitelaw said.

AirTrunk founder and chief executive Robin Khuda said "digital growth must bring new energy with it."

The federal government expects new data centres to secure new and additional clean energy generation or storage to offset their demand.

The NSW Data Centre Guidelines expect operators to fund the extra supply and infrastructure their projects need, without shifting net costs to households, businesses or communities.

Power use has been one of the main concerns raised about the Kurri Kurri proposal.

Cessnock City Council voted unanimously last month to lodge an objection and called for a national freeze on data centre approvals until federal rules are in place.

Cr Jessica Jurd told the meeting she feared the facility, which she said would draw about 550 megawatts, would strain local power supplies.

A Change.org petition against the project said there was insufficient renewable energy to supply it entirely.

AirTrunk's environmental impact statement said the company was committed to matching 100 per cent of its electricity use with renewables by 2030 through long-term power purchase and firming agreements.

The Herald has previously reported the company may use the nearby Snowy Hydro gas peaking plant to bridge the gap between clean energy and fossil fuels.

AirTrunk said about 73 per cent of its electricity use across its portfolio was matched with renewable energy in the 2026 financial year.

The wind farm in the new partnership is not expected to operate until two years after the 2030 target.

European Energy Australia managing director Catriona McLeod said partnerships like this allowed more renewables to come online and add more energy to the grid.

The two companies have also worked together on the 31-megawatt Mulwala Solar Farm in southern NSW, which opened this week.

The project is on exhibition on the NSW Planning Portal as SSD-128819490.

Cessnock council is not the consent authority. The state government will decide it.

AirTrunk has said the data centre would create more than 350 ongoing jobs, use air-cooling rather than water, and pay for its own grid connection.