SunCable has announced the immediate focus for its flagship Australia-Asia Power Link (AAPowerLink) project is to build solar and battery energy storage at scale to supply customers in the Northern Territory (NT), including data centres, with the original idea of exporting power to Singapore now a longer-term target.
“Our immediate focus is a pragmatic one,” the company said in a statement. “Building generation and storage capacity that can begin supplying customers in the near term, while laying the foundations for a larger, long-term energy export system.”
SunCable is seeking to develop a large-scale solar and battery energy storage complex on a 12,000-hectare site at Powell Creek in the NT’s Barkly region. Early plans included 20 GW of solar and up to 42 GWh of battery energy storage.
When AAPowerLink was originally conceived in 2019 it was designated as an export-only project but SunCable said it is now looking at supplying customers in the NT, including data centres that could be located in the Barkly region, as it works to advance the development.
“The energy-hungry digital sector will be one of the first movers in the transition to large-scale renewable power supply,” SunCable said, adding that the NT offers a “compelling proposition” for sustainable data precincts with abundant renewable energy, existing fibre optic connectivity, land availability, and proximity to key regional markets.
With 250 data centres spread across the country and a further 175 predicted to be needed by 2030, Australia is one of the world’s top five data centre hubs.
The data centre market in Australia is growing rapidly with 250 data facilities already established in the country. Currently, data centres in Australia consume about 5% of the national electricity generation, which is expected to grow to 8% by 2030. Some estimates even suggest that data centres could require up to 15% of total grid power by then.
SunCable said it is already in talks with a range of potential offtakers across the full footprint of the project, including data centre customers.
“There are existing and growth market opportunities in Darwin and Singapore which have underpinned the development activities to date,” the company said. “In addition to this, SunCable has explored opportunities to supply prospective customers in the Barkly region.”
SunCable said the option to supply customer projects in the Barkly would allow it to demonstrate delivery, build momentum, and create security and confidence in the project.
“Activating these development opportunities provides confidence and certainty,” it said, adding that the opportunity to supply customers in the Barkly region is not dependent on the build out of transmission infrastructure, and can be delivered from the late 2020s.
SunCable said it could be supplying power in the Barkly region by as early as 2028, followed by power supply to Darwin in the early 2030s, with exports of electricity to Southeast Asia targeted for the mid-2030s.
The company’s latest update indicates a final investment decision in 2027.
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