AirTrunk and European Energy Australia have signed an exclusivity agreement to progress two renewable energy projects in New South Wales’ Hunter region, as the data centre operator looks to support growing electricity demand, including a proposed Kurri Kurri data centre campus.
The companies said the proposed developments include a 260MW solar project, an 800+MWh battery project and up to 350MW of wind generation in the Hunter-Central Coast Renewable Energy Zone. Combined, the projects “could add more than a gigawatt of new renewables generation and storage” to NSW’s electricity system.
AirTrunk and European Energy Australia said they are progressing project development and discussing a potential long-term power purchase agreement to support AirTrunk’s NSW energy requirements. The projects and any potential agreement remain subject to further development, approvals and final arrangements.
European Energy plans to connect the projects to Ausgrid’s upgraded 132kV network in the Hunter-Central Coast Renewable Energy Zone. The companies said operations are expected to begin in 2030 for the solar and battery components, and 2032 for the wind project, subject to final connection arrangements, approvals and technical assessments.
The announcement comes amid increased scrutiny of data centre energy use. The companies pointed to Australian Government expectations that new data centres secure new and additional clean energy generation and/or storage to offset demand, and NSW Data Centre Guidelines that expect operators to fund additional energy supply and infrastructure “without shifting net costs to households, businesses or communities”.
Robin Khuda, Founder and CEO of AirTrunk, said: “Digital growth must bring new energy with it. The Australian Government’s expectations and NSW’s guidelines set a high bar for the industry. This partnership is an important step towards delivering on that commitment.”
Sabooh Whitelaw, AVP Energy at AirTrunk, said: “We understand the community wants to know how Kurri Kurri’s electricity needs will be supported. Our focus is on bringing new renewable generation forward and securing renewable electricity through long-term supply arrangements.”
Catriona McLeod, Managing Director, European Energy Australia said: “It’s great to see AirTrunk and the tech sector embracing renewable energy – partnerships like this allow us to bring more renewables online and add more energy to the grid.”
The partnership follows the official opening of the 31MW Mulwala Solar Farm in NSW, which the companies said is now supplying renewable electricity to the state’s grid.
AirTrunk said it is proposing a data centre on the former Kurri Kurri smelter site at Loxford, and that it has engaged with the local community over the past four months through information sessions, project updates and a drop-in hub as the proposal moves through the planning process.
AirTrunk also reiterated its target to match 100% of its electricity use with renewable energy by 2030 as part of its Net Zero 2030 target, stating that in FY26 around 73% of its electricity use was matched with renewable energy across its portfolio.
