Australia's Northern Territory has granted 185 hectares of land to Beetaloo Digital Pty Ltd., a unit of natural gas company Beetaloo Energy Australia Ltd., to develop two hyper-scale AI data center campuses that could attract A$40 billion ($28 billion) in private investment. The company plans to build up to 2 gigawatts of power generation for the sites, using fuel from a massive shale gas deposit that is set to start commercial production this year.

Power demand from data centers is poised to surge in Australia over the next quarter-century, risking an increase in emissions after years of declines. Beetaloo Energy shares jumped as much as 20% in Sydney. The project is near Darwin's existing subsea cables offering links to Asia-Pacific markets.

Chief Minister Lia Finocchiaro said data center proponents are looking to the Territory for reliable Beetaloo gas-to-power supported by renewables and proximity to Asian markets. Critics, including Environment Centre NT, have raised concerns about emissions, water use and climate impacts from expanded hydraulic fracturing and large-scale data center development.