A proposed $31 billion data centre project by global AI company Anthropic has sparked significant local opposition in rural Queensland, underscoring growing community concerns about large-scale infrastructure developments in the region. The facility, planned near the town of Kogan, approximately 180 kilometres west of Brisbane, would become Australia’s largest data centre and serve as the backbone for powering Anthropic’s large language model, Claude.
The development is slated for a 725-hectare site currently occupied by a 24,000-head feedlot and surrounded by gas wells. Its estimated peak power demand is around 2.16 gigawatts, roughly one-quarter of Queensland’s total state energy requirement. The project promises thousands of construction jobs and about 1,400 long-term roles, according to Terra DC, the Singapore-based developer collaborating with Anthropic. Terra DC also asserts that the data centre’s cooling system will be less water-intensive than typical facilities, roughly comparable to the water use of an average shopping centre.
Despite these projected economic benefits, residents and local stakeholders have raised strong objections. Many in the community, including long-time local Denver Kanowski, express skepticism rooted in past experiences with resource booms, particularly coal seam gas. Kanowski, who has lived in the area for decades, described the project as “the power of money and greed” and warned against repeating cycles marked by rapid growth followed by economic decline. Similarly, farmer and campaigner Liza Balmain drew parallels between the data centre proposal and the coal seam gas industry’s boom-bust pattern, which she said left some parts of the region worse off after an initial influx of workers and investment.
The backlash gathered swift momentum. Dalby travel agent Mordechai Winters organized a petition opposing the data centre, which attracted more than 21,500 signatures within weeks, primarily from local residents. The concerns raised include the project’s significant energy consumption, potential noise impacts, and poor siting in a rural, agricultural region. Similar opposition has been observed internationally, particularly in the United States, where public opposition to large data centres has resulted in bans in over 500 counties.
Environmental groups also voiced caution. Jo Shulman, CEO of the Environmental Defenders Office, noted a surge in inquiries about data centres to their legal advice service—up 250% since the start of the year. Shulman acknowledged the role data centres play in enabling the clean energy transition but called for a moratorium on new projects to allow for the development of appropriate national standards and avoid replicating the social and environmental challenges seen during the coal seam gas era.
Local government initially expected to retain control over the project’s approval. Dalby Mayor Andrew Smith emphasized the Western Downs Regional Council’s role, serving a population of just over 35,000, in assessing the proposal. However, the Queensland state government recently announced it would assume planning authority for data centres statewide to ensure consistent regulation, placing the projects under the oversight of the state’s planning minister, Jarrod Bleijie. Officials stressed that any approvals would still require engagement and support from local councils and communities.
Premier David Crisafulli has actively encouraged Anthropic’s investment in Queensland, highlighting potential job creation and economic diversification opportunities for regional areas. He pointed to the coal seam gas industry’s previous contributions as a benchmark for managing such developments. Meanwhile, regional development leaders like Jo Sheppard, CEO of Toowoomba and Surat Basin Enterprise, have underscored the transformative potential of the project, viewing it as an opportunity to enhance the local economy beyond its traditionally agricultural base.
Nonetheless, some residents remain deeply skeptical. Kanowski expressed concerns that the project represents not only an environmental threat but also a cultural and social disconnection from the natural world. “This is my world, I love it,” he said, criticising data centre developers for overlooking local environmental and community values.
As the state government prepares to take over the planning process, the future of Anthropic’s data centre hangs in the balance amid competing visions for economic growth, environmental stewardship, and community wellbeing in rural Queensland.