Australian AI cloud provider IREN has selected Bundey, South Australia, as the site for its first Australian data center campus, securing an 800-megawatt transmission connection through one of the state’s largest future energy infrastructure hubs. The company said it has signed a transmission connection agreement supporting a planned 800MW AI data center campus located approximately 125 kilometers northeast of Adelaide. Energization of the facility is expected to begin in 2028. The development ranks among the largest announced data center projects in the Asia-Pacific region and highlights the growing role of transmission infrastructure in attracting large-scale AI and cloud investments.
Bundey AI Data Center Benefits From Dedicated Transmission Capacity
Unlike many Australian data center projects that face power availability constraints, IREN’s Bundey campus will have direct access to a major transmission node. The agreement provides access to four 330-kilovolt feeder exits at the utility substation. According to the company, the infrastructure can support up to 800MW of capacity without requiring network upgrades, providing a significant advantage as AI workloads drive demand for larger compute facilities.
The site also sits at the center of ElectraNet’s proposed Northern Transmission Project (NTx), a major expansion of South Australia’s high-voltage network designed to connect renewable energy zones, support growing electricity demand, and accommodate future industrial loads. While the NTx project was not specifically designed for data centers, it is expected to create additional transmission capacity that could attract energy-intensive industries and AI infrastructure operators.
Renewable Energy and Regional Connectivity Support Expansion
IREN cited South Australia’s renewable energy ambitions and international connectivity as key factors behind the investment decision. “South Australia offers what AI infrastructure at scale requires: abundant clean energy, the connectivity to serve the APAC region, and a state government that understands the opportunity and is acting on it,” said Daniel Roberts, co-founder and co-chief executive of IREN.
The company noted that South Australia is targeting 100 percent net renewable energy by 2027. The Bundey site also benefits from fiber connectivity linking key Asia-Pacific markets, including Singapore, Indonesia, South Korea, and Japan. “The Bundey campus is able to serve global and regional AI demand, as well as South Australia’s own growing need for AI compute,” Roberts added.
Project Supports AI Infrastructure Growth Across Australia
IREN said the campus will support both domestic and international AI workloads while helping expand compute capacity in Australia. The company expects the project to create more than 500 construction jobs and over 200 long-term operational roles once the facility becomes fully operational. “We look forward to partnering with the government of South Australia, local communities and industry to expand domestic access to AI infrastructure, support research and innovation, and help build the skills and jobs the AI economy requires,” Roberts said.
Expansion Builds on Global AI Infrastructure Strategy
The Bundey development represents another step in IREN’s transition from cryptocurrency mining into large-scale AI infrastructure. The company previously signed a $9.7 billion agreement with Microsoft to provide Nvidia GB300 GPU cloud infrastructure from its Childress, Texas campus. More recently, IREN secured $3.65 billion in investment-grade financing to support AI infrastructure deployment. IREN has also announced plans with Nvidia that could support up to 5 gigawatts of AI infrastructure, bringing its total development pipeline to more than 5GW across North America, Europe, and Asia-Pacific.
South Australia Positions for AI Infrastructure Investment
South Australian Premier Peter Malinauskas said the project could strengthen the state’s position in the emerging AI economy. “Data centres are a significant economic opportunity, which can bring high-quality jobs, stronger renewable energy infrastructure, and new opportunities for regional communities,” he said. “South Australia’s leadership in renewable energy, our record investment in higher education, our unashamed pro-jobs and pro-business outlook and appointing the nation’s first dedicated minister for artificial intelligence means we are uniquely placed to seize the opportunities of AI.”
