Massive Keralup gas plant could power neighbouring data centre

Western Australia’s biggest-ever proposed gas-fired power plant could power a neighbouring data centre, but the energy infrastructure giant behind the plan has stressed no agreements have been signed yet.

APA Group’s Keralup power station, 53 kilometres south of Perth, is currently open for public comment by the Environmental Protection Authority.

According to documents lodged with the EPA, the 870-megawatt, gas-fired power station will be split into a 210-megawatt temporary facility providing electricity solely for an “industrial client”, and a separate 660 megawatt facility that will feed into the South West power grid, as well as a large grid-scale battery system.

WAtoday understands a major data centre builder has expressed interest in a nearby site in the future Keralup industrial area, though no plans have been lodged.

When asked about the mystery client, APA said no agreements had been signed with any client, but the company’s group executive of energy solutions confirmed data centres would make a good customer for the power plant.

“APA has not executed agreements with any customer for the offtake of the energy associated with this potential development,” Rogers said.

“APA is progressing planning and approvals for the site to ensure we are ready to support potential future customers, which is our standard approach and occurring at multiple sites across the country.

“The site has the potential to provide grid firming to the South-West Interconnected System and directly support industrial energy users, including data centres, having been identified for decades as a potential industrial development site by successive state governments.

“The site is unsuitable for residential development, is located away from residential areas and is close to existing enabling infrastructure.”

The temporary 210 megawatt facility will run from 2027 for three to five years.

APA Group has previously expressed interest in powering data centres.

In an interview with Livewire in February, APA Group chief executive Adam Watson said the company was exploring behind-the-grid power plants similar to those used in mining operations.

“Data centres consume an enormous amount of energy … and quite frankly, there’s just not enough power available on the grid,” he told the website.

“Think of a solution where you’ve got an industrial park where we could build a gas-fired power generator, a solar farm, a battery, and be able to have that data centre operate on that piece of land.

“Could be a really interesting one to watch.”

The prospect of a gas-powered data centre in Keralup has concerned the WA Greens, who want the Cook government to rule it out.

“There’s zero way that in 2026 we can allow this carbon bomb to proceed,” Greens fossil fuels and climate change spokeswoman Sophie McNeill said.

“Is the Cook government reneging on their commitment to the federal plan for new data centres to be powered by renewable energy?

“It is simply not acceptable to claim that you want to be a renewable energy powerhouse one day and then the same week, entertain the building of the largest new gas-fired power station in Western Australian history.”

Earlier this week, the Cook government announced it would set a renewable energy target on the South West power gride from 40 per cent this year to 75 per cent by 2031.

On Tuesday, Energy Minister Amber-Jade Sanderson said the Keralup facility was a private project.

The Cook government has kept an open mind about data centres, with the premier last month suggesting the Mid West and North West regions of the state would make ideal locations for the mammoth facilities driving the AI boom.

The development would take up 85,945 square metres and comprise 87 parking bays.