Quantum DC Proposes 1.2GW Gas-Hybrid Data Center and Energy Hub Outside Adelaide

Australia's data center build-out is pushing into new territory, with developers increasingly pairing large-scale computing campuses with on-site power generation to overcome grid constraints. The latest entrant is Quantum DC, a first-time developer led by Melbourne-based real estate figure Alby Tomassi, which is seeking approval for a gigawatt-scale data center and energy complex in South Australia's Adelaide Hills.

Quantum DC has lodged plans for the Tungkillo Compute and Energy Hub, proposed for 312 Collins Road in Tungkillo, roughly 55km east of Adelaide. The campus is designed to include three data center buildings, two substations and on-site natural gas-fired turbines, and would be co-located with battery energy storage projects being developed separately under their own applications. At full build-out the site could reach 1.2GW, delivered in three stages, with the first phase expected to begin operations in 2028 and the entire development targeted for completion by 2031.

The project is designed so that wind and solar would supply around 80 percent of the electricity the data center consumes, with on-site gas generation providing the remaining 20 percent. Quantum said the gas turbines would run only when "wind and solar output is low" rather than continuously, and that the site would not rely on diesel generators for backup power. The hub's on-site generation would also feed electricity into the grid at times. Spanning approximately 220 hectares, the campus would develop about 120 hectares, leaving the remainder as undeveloped grazing land, and would be built to Tier IV standards with a closed-loop cooling system to curb water use.

Quantum DC intends to lodge its development application through South Australia's Essential Infrastructure/Crown assessment pathway, with the Minister for Planning making the final decision. The proposal has already drawn local opposition: a Change.org petition against the project had gathered more than 1,600 signatures at the time of writing, and a Facebook group opposing it had more than 3,300 members. South Australian Greens senator Sarah Hanson-Young said in a post that "our beautiful Adelaide Hills are not the place for a power- and water-hungry data center."

The Tungkillo proposal reflects a broader wave of AI-driven infrastructure investment in South Australia. Australian AI cloud company Firmus is planning two large sites in the state, including a campus outside Adelaide at Tailem Bend, about 65km south of Tungkillo, that could total 1GW across eight buildings built in phases from next year through 2028, as well as a roughly 1.3GW campus further south at Stirling North. For Quantum DC, the project marks its first venture, and its outcome will be closely watched as developers test whether gas-backed, renewable-heavy campuses can win planning approval in sensitive landscapes.