Editor’s note: The story has been updated to include Google’s response.
Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google plans to construct a large artificial intelligence data centre on Christmas Island, a remote Australian territory, in a move experts say could have both commercial and defence implications.
Google, in a statement to Benzinga, denied reports that it is constructing an AI data centre.
“We are not constructing “a large artificial intelligence data centre” on Christmas Island. This is a continuation of our Australia Connect work to deliver subsea cable infrastructure, and we look forward to sharing more soon,” said a Google spokesperson.
Google Moves To Secure Land And Energy For AI Data Centre
Documents reviewed by Reuters and interviews with officials reveal that Google, owned by Alphabet, is in advanced talks to lease land near the island's airport and secure energy through a local mining company.
The company also applied for approval to build a subsea cable connecting the island to Darwin, Australia, where U.S. Marines are stationed part of the year.
AI Data Hub Boosts Defence And Local Economy
"The data centre is partly to allow you to do the kinds of AI-enabled command and control that you need to do in the future, especially if you rely on uncrewed systems for surveillance missions and targeting missions," said Bryan Clark, former U.S. Navy strategist and Hudson Institute fellow.
Australia's Defence Department signed a three-year cloud agreement with Google in July, with similar arrangements recently announced by the UK military to boost intelligence sharing with the U.S.Local officials emphasized the potential community impact.
Christmas Island Shire President Steve Pereira said, "There is support for it, providing this data centre actually does put back into the community with infrastructure, employment and adding economic value to the island."
See Also: Google Tightens ‘Work From Anywhere' Policy, With Even 1 Remote Day Counting As Full Week: Report
Google's $15 Billion AI Data Centre in India Amid Rising Energy Concerns
Last month, Google, led by Sundar Pichai, announced a $15 billion investment to build a massive AI data centre in Visakhapatnam, India, marking its largest facility outside the U.S.
The project, developed in partnership with AdaniConneX and Bharti Airtel, was planned to have a 1-gigawatt power capacity, with Google Cloud CEO Thomas Kurian emphasizing responsible AI and societal impact.
At the same time, venture capitalist Chamath Palihapitiya warned that the rapid AI boom, driven by Google, Meta Platforms Inc. (NASDAQ:META), Microsoft Corp. (NASDAQ:MSFT), and Amazon.com Inc. (NASDAQ:AMZN) using Nvidia Corp. (NASDAQ:NVDA) GPUs, could double electricity rates within five years.
He noted that AI data centres were straining power grids and cautioned that big tech might face public backlash over rising energy costs if solutions were not implemented quickly.
Read More:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
