Bundey Data Centre construction project is accelerating in South Australia after US-based IREN committed to develop an 800MW hyperscale AI campus near Bundey, approximately 125km northeast of Adelaide. The $10 billion infrastructure project targets Australia’s first 100% net renewable electricity grid, positioning the state as a global leader in green-powered digital infrastructure. Consequently, the development aligns with rising global demand for AI compute capacity powered by low-carbon energy systems. Moreover, the project strengthens South Australia’s role as a strategic hub for data-intensive technologies. It will be delivered in phases, with energization expected from 2028.
Transitioning from planning to execution, the Bundey site sits near a major transmission node at the Bundey substation. Therefore, the project benefits from existing high-voltage infrastructure and proximity to large-scale renewable generation. Additionally, the surrounding region hosts wind, solar, and battery assets that already support grid stability. As a result, developers expect reduced infrastructure delays and improved construction efficiency.
Importantly, IREN secured a transmission connection agreement with ElectraNet. This agreement enables four 330kV feeder exits, allowing up to 800MW of grid capacity without major upgrades. Consequently, the Bundey Data Centre construction project gains a critical foundation for rapid scaling and staged delivery.
Bundey Data Centre construction project strengthens Australia’s AI infrastructure strategy
Bundey Data Centre development supports rising AI workloads across cloud computing, machine learning, and large-scale model training. Furthermore, the facility will serve regional demand across the Asia-Pacific market through high-capacity fiber links to Singapore, Japan, South Korea, and Indonesia. Therefore, the project enhances Australia’s position in the global digital economy.
South Australia’s renewable energy transition plays a central role in project selection. The state is on track to reach 100% net renewable electricity by 2027. Consequently, the Bundey Data Centre construction project will operate in one of the world’s cleanest grid environments. Additionally, this supports long-term power purchase agreements tied to wind and solar generation.
Transitioning to economic impact, the project is expected to generate more than 500 construction jobs. Moreover, it will support over 200 permanent technical and operational roles. These opportunities strengthen regional employment while building a skilled workforce for Australia’s growing AI sector.
Bundey Data Centre project anchors renewable-powered industrial corridor
Bundey Data Centre construction is integrated into a broader renewable energy corridor already hosting major infrastructure projects. For example, Neoen’s Goyder Energy Park includes large-scale wind, solar, and battery systems adjacent to the substation. Therefore, the data center benefits from a highly developed renewable ecosystem.
Additionally, nearby developments such as the Bundey Solar Farm and large battery storage projects further reinforce grid reliability. Consequently, the region is evolving into a high-density energy and digital infrastructure hub. This co-location model reduces transmission losses and improves energy efficiency for large-scale computing loads.
Importantly, the project reflects a global shift toward renewable-powered AI infrastructure. Developers increasingly prioritize stable, low-carbon electricity sources for hyperscale facilities. As a result, the Bundey Data Centre construction project may influence future data center investments across Australia and beyond.
The Bundey Data Centre construction project connects directly to Australia’s broader AI infrastructure expansion strategy already underway across multiple states. Notably, Microsoft’s parallel $25 billion Australia data centre project is accelerating nationwide development of AI, cybersecurity, and hyperscale cloud infrastructure, reinforcing Australia’s position as a key Indo-Pacific digital hub. In addition, both projects align with rising hyperscale demand that is reshaping power procurement, with developers increasingly targeting renewable-rich grids and long-term energy agreements.
Furthermore, the Bundey development complements Microsoft’s wider network of AI-focused data centers being deployed across Sydney and Melbourne, where capacity expansion is already underway. Consequently, Australia is emerging as a multi-operator AI infrastructure market, where projects like Bundey and Microsoft’s national buildout collectively strengthen grid investment, transmission upgrades, and renewable integration. Therefore, the Bundey Data Centre project should be viewed not as an isolated asset, but as part of a coordinated national shift toward large-scale, renewable-powered digital infrastructure development.
Project Fact Sheet
Project Name: Bundey Data Centre (Australia Renewable Data Centre Project)
Location: Bundey, South Australia (~125km northeast of Adelaide)
Project Value: $10 billion
Capacity: 800MW hyperscale AI data centre campus
Developer: IREN (formerly Iris Energy)
Project Type: AI-focused hyperscale construction project
Grid Connection: ElectraNet transmission agreement
Electrical Interface: Four 330kV feeder exits
Energy Source: South Australia 100% net renewable electricity grid (target 2027)
Construction Phasing: Multi-stage development
First Energization: 2028
Primary Use: AI computing, cloud services, data processing
Connectivity: Fibre links to Singapore, Japan, South Korea, Indonesia
Estimated Construction Jobs: 500+
Estimated Permanent Jobs: 200+
Strategic Advantage: Renewable energy corridor integration
Project Team
Project Developer: IREN
Co-Founder & Co-CEO: Daniel Roberts
Transmission Network Operator: ElectraNet
State Government Partner: Government of South Australia
Premier of South Australia: Peter Malinauskas
Renewable Energy Developer Ecosystem: Neoen (Goyder Energy Park)
Battery Storage Developers: Neoen and regional energy storage providers
Solar Energy Developers: Genaspi Energy (Bundey Solar Farm)
Transmission Infrastructure Project: Project EnergyConnect stakeholders
Regulatory Authority: Australian Energy Market Operator (AEMO)
AI Hardware Ecosystem: NVIDIA and associated suppliers
Cloud & AI Clients: Microsoft and global enterprise users
Engineering & Procurement Contractors: To be appointed
Construction Contractors: To be appointed
Telecommunications Partners: Submarine fibre network operators
Local Stakeholders: Bundey and Mid North South Australia communities
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