Beetaloo Digital Project: 2GW Gas-Powered AI Data Center Campus to be Constructed Near Darwin

Beetaloo Energy Australia has made further progress towards developing its proposed Beetaloo Digital Project – a 2GW AI data center campus at Weddell, near Darwin – through new partnerships. In its September 2026 quarterly activities report, released on October 20, the company confirmed that it had signed non-binding memoranda of understanding (MoUs) with Halliburton and Australian Gas Infrastructure Group (AGIG). The MoUs are set to advance key components of the development.

The agreement with Halliburton, announced on July 30, covers technical support for upstream gas field development, drilling, completions, production and project execution. Meanwhile, the August 24 agreement with AGIG provides for preliminary assessments of gas transportation infrastructure. This also includes a proposed 750-kilometer pipeline connecting the Carpentaria Gas Project towards future demand centers in Darwin.

The upstream gas supply component is also progressing, with construction of Beetaloo Energy’s Carpentaria Gas Plant approaching completion. The company reported that mechanical works were largely complete, with electrical and instrumentation works remaining ahead of commissioning and first pilot gas sales targeted for the fourth quarter of 2026.

Its Carpentaria-5H horizontal well also delivered a peak flow rate exceeding 14 terajoules per day during testing. The well also had a 30-day average of 6.9TJ per day.

Meanwhile, Beetaloo Digital Project remains in the feasibility and pre-FEED development stage. This is while the developer continues pursuing additional consortium partners across power generation, pipeline infrastructure and data center operations.

Beetaloo Digital Project

Its latest project concept also highlights closed-loop direct-to-chip liquid cooling technology intended to reduce water consumption. The proposed development remains subject to technical studies, commercial agreements, financing and regulatory approvals. No final investment decision (FID) or EPC contractor appointment has been announced yet.

Beetaloo Digital Advances Proposed 2GW Data Centre Campus

Reported July 22, 2026 – The Northern Territory government has handed over 185 hectares (457 acres) of land to Beetaloo Digital, a branch of Beetaloo Energy Australia to develop a massive AI data center project that could reel in A$40 billion ($28 billion) in private funding.

The plan is to build two “hyperscale” AI data center campuses. They will be powered by up to 2 gigawatts of energy. Also, the energy will be fueled directly by a huge local shale gas deposit that is slated to kick off commercial production later this year.

After the news dropped, Beetaloo Energy’s stock surged up to 20% in Sydney. According to a regulatory filing, the company is already hunting for development partners. The project’s location just outside Darwin is a big selling point. Also, it sits right next to subsea cables that provide high-speed connections to major markets across the Asia-Pacific.

“Data center proponents are looking to the Territory because of the promise of reliable and affordable Beetaloo gas-to-power supported by renewables, and because of how close and connected we are to major Asian markets and digital superpowers,” said Northern Territory Chief Minister Lia Finocchiaro.

Disadvantages of Rapid Data Center Development

However, the tech expansion comes with heavy environmental baggage. The global AI boom is already putting immense pressure on power grids and freshwater supplies. Additionally, in Australia specifically, data center power demands are expected to skyrocket over the next 25 years, threatening to reverse years of hard-won progress in cutting electricity emissions.

Moreover, local environmental advocates are raising alarm bells over the combined impact of the data centers and fracking in the Beetaloo Basin. Lastly, the Environment Centre NT warned that hydraulic fracturing in the region alone could spike Australia’s overall emissions by up to 20%, placing even more stress on the area’s limited water resources.

“The Northern Territory is forecast to become unlivable owing to climate change within a couple of generations, yet new data shows the Territory’s yearly greenhouse gas emissions are skyrocketing,” the organization noted.

The project is located in Weddell, Northern Territory, Australia (30 km southeast of Darwin)

Beetaloo Digital Project: Factsheet

Project Name: Beetaloo Digital Project

Developer: Beetaloo Digital Pty Ltd (wholly owned subsidiary of Beetaloo Energy Australia Limited)

Estimated Investment: Up to A$40 Billion ($28 Billion USD) in private capital

Location: Weddell, Northern Territory, Australia (30 km southeast of Darwin)

Site Allocation: 185 hectares (457 acres) awarded under an exclusive “not to deal” land commitment by the NT Government

Infrastructure and Technical Scope

Data Center Scale: Two proposed “hyperscale” AI data center campuses.
Power Capacity: Up to 2 Gigawatts (2,000 MW) of on-site gas-fired electricity generation.
Gas Consumption: Up to 200 Terajoules (TJ) per day per GW of compute power.
Primary Fuel Source: Onshore natural gas sourced directly from Beetaloo Energy’s upstream shale deposits in the Beetaloo Basin.
Grid and Renewable Integration: Designed with capability to overbuild generation, providing baseload power to firm up the local Darwin–Katherine electricity grid and support solar/battery projects (Darwin Energy Hub).
Connectivity: Greenfield site adjacent to the planned Territory Energy Link pipeline and Darwin’s existing subsea fiber-optic cable landings, offering low-latency links to Asia-Pacific digital markets.

Economic and Labor Impact

Construction Jobs: Estimated 5,000 temporary jobs.
Operational Jobs: Estimated 350 permanent operational jobs.
Workforce Model: Local hiring strategy focused on the Darwin and Palmerston pools (avoiding a Fly-In, Fly-Out model).

Current Status and Roadmap

Land Exclusivity Granted: Completed (July 2026)
Corporate Subsidiary Launch: Completed (July 2026)
Pre-FEED and Concept Studies: Underway
Consortium and JV Partner Selection: Underway (pipeline, power generation, and data operators)
Beetaloo Basin Pilot Production: Targeted Q4 2026

Project Team

Primary Developer and Parent Entity

Beetaloo Digital Pty Ltd: The project’s lead proponent and operating vehicle, established as a dedicated subsidiary to handle downstream infrastructure execution.
Beetaloo Energy Australia Limited (ASX: BTL): The parent ASX-listed oil and gas explorer responsible for upstream gas extraction from its holdings in the Beetaloo Sub-basin to supply the site’s power plants.

Government and Regulatory Bodies

Northern Territory Government (Finocchiaro CLP Administration): Key institutional facilitator that granted exclusive land rights (“not to deal” status) over 185 hectares in Weddell and is integrating the development into its regional digital economy strategy.
Department of Lands, Planning and Environment (NT): Oversees site zoning, land tenure frameworks. Also, it oversees environmental assessment approvals.

Non-Governmental Organizations and Environmental Groups

Environment Centre NT (ECNT): Primary regional advocacy group opposing the project over fracking emissions and local water security impact.
Greenpeace Australia Pacific: National environmental campaigner challenging the gas-to-power framework and calling for regulatory moratoriums on fossil-fuel-backed AI data centers.

Adjacent Regional Proponents

Energy North’s Project Ares Data Center Project: Independent energy developer proposing a separate, competing 1GW gas-and-solar AI data center facility at Murranji Station in Australia’s Northern Territory’s Barkly region.