Australian Firms Partner on Hybrid Renewable Project to Power 50MW Data Center

Pilot Energy, SN Energy Partner on Hybrid Solar-Battery Project Colocated with 50MW Data Center in Western Australia January 06, 2026 A strategic partnership in Western Australia aims to address the dual challenges of powering the region's booming data center market and integrating renewable energy into the grid. Pilot Energy Limited has entered a binding agreement with SN Energy Australia to co-develop a hybrid solar and battery energy storage system (BESS) project that will be colocated with a proposed 50-megawatt data center. The collaboration, formalized through a heads-of-agreement, sees SN Energy committing to provide upfront and milestone payments totaling $10.75 million, plus costs associated with securing grid connections and development approvals for both facilities. As part of the deal, SN Energy will also fund the acquisition of the project site near Three Springs, which was originally intended for a standalone solar farm. Brad Lingo, Managing Director of Pilot Energy, stated, "This is a great result for the company. The joint development agreement with SN Energy enables Pilot to realize a significant amount of capital while delivering a much-enhanced new hybrid project. The hybrid solar BESS project now meets energy market requirements for firm renewable power solutions." The project underscores a significant shift for Pilot Energy, traditionally an oil and gas explorer, as it diversifies into low-carbon energy systems. Its partner, SN Energy, is a global renewable energy platform focused on integrating power generation with energy-intensive operations like AI data centers and cryptocurrency mining. While the data center's capacity is noted at 50MW, specific details regarding its developer, timeline, and anchor tenant remain undisclosed. This initiative arrives as Australia's data center sector experiences unprecedented growth, driven by post-pandemic digitalization and soaring demand for artificial intelligence infrastructure. A recent market report indicated the sector has expanded forty-fold over two decades, attracting major investments like Amazon's planned $20 billion build-out. However, this rapid expansion is straining local infrastructure, with industry analysts warning of a potential supply gap between 700MW and 1.7GW by 2028 due to power availability constraints, grid challenges, and high construction costs. The Pilot-SN Energy project represents a direct response to these market pressures, offering a model for providing firm, renewable power directly to a large-scale digital infrastructure asset. If successful, it could pave the way for similar integrated developments, helping to alleviate grid pressure while supporting the industry's sustainability goals in a market grappling with the physical limits of its power networks. Source: datacenterdynamics