Pilot Energy and Kala Data Launch Flared Gas-Powered Data Center in Western Australia

Pilot Energy and Kala Data Launch Flared Gas-Powered Data Center in Western Australia January 22, 2026 In a move that underscores the growing convergence of energy and digital infrastructure, Australian oil and gas firm Pilot Energy has partnered with UAE-based technology company Kala Data to deploy a modular data center powered by flared natural gas in Western Australia. The project represents a novel approach to both monetizing stranded energy assets and reducing the carbon footprint of data center operations. The initiative, first announced in October 2025, involves installing a 1-megawatt (MW) containerized data center module at Pilot Energy's Arrowsmith site, located approximately 300 kilometers north of Perth. The facility, named the Dongara Data Centre, will utilize excess natural gas from the nearby Cliff Head oil field, which would otherwise be flared off. The module, equipped with immersion cooling systems and Starlink satellite connectivity, was assembled in China and is awaiting shipment. Site preparation and connection to existing 4.4MW gas-fired generators are underway, with the facility slated to become operational by late March 2026. The initial 1MW deployment is positioned to become the first major live data center in Western Australia's Midwest region and rank among the state's top ten facilities by power capacity. Pilot Energy has outlined an aggressive expansion plan, aiming to scale the site to 4MW by mid-2026, which would elevate it to the seventh-highest capacity data center in Western Australia. Furthermore, the companies are actively assessing the potential for a significant scale-up to between 30MW and 35MW across the Arrowsmith site or at Pilot's separate Three Springs Solar Project. Brad Lingo, Managing Director of Pilot Energy, framed the project as a strategic pivot. "The Dongara Data Centre Project represents an important step towards generating revenue and maximizing the value of our existing infrastructure at Arrowsmith," Lingo stated. He emphasized that the phased build-out "positions Pilot to deliver one of Western Australia’s first live data centers in the Mid West." The partnership signals a broader industry trend of energy companies diversifying into digital infrastructure and leveraging underutilized power sources. For Pilot Energy, which has recently begun pursuing low-carbon energy systems including hydrogen and carbon capture, this project aligns with its transition strategy. Kala Data specializes in deploying high-performance computing modules at energy sites to monetize flare gas. This model not only provides a productive use for waste gas but also offers data center operators a potentially cost-effective and less grid-reliant power source, which could serve as a blueprint for similar deployments in remote resource-rich regions globally. Source: datacenterdynamics