AirTrunk Signs 1GW Renewable Energy Exclusivity Deal in NSW

AirTrunk has signed an exclusivity agreement covering roughly 1GW of new renewable capacity in the Hunter region of New South Wales. The APAC data center operator struck the deal with European Energy Australia to progress two projects inside the Hunter-Central Coast Renewable Energy Zone (a designated area for coordinated renewable build-out). No contract value, offtake volume or tariff structure was disclosed. That omission matters.

What does the agreement actually contain?

The exclusivity agreement, announced this week, covers:

• A 260MW solar farm
• A battery project exceeding 800MWh
• A wind project of up to 350MW

The solar and battery components are expected to begin operating in 2030. The wind project follows in 2032. The parties did not state the expected completion dates are contractual milestones or mere projections. Exclusivity agreements typically precede final investment decisions. AirTrunk and European Energy Australia did not say whether either party can withdraw before financial close.

Robin Khuda, founder and CEO of AirTrunk, framed the deal against regulatory pressure. He 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." An "important step" is not a delivered project. The dates sit four to eight years out.

Catriona McLeod, managing director of 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." Her statement makes no claim about matching AirTrunk's consumption hour by hour.

How far along is AirTrunk's 2030 target?

AirTrunk has committed to matching 100 percent of its electricity use with renewable energy by 2030, under its Net Zero 2030 target. In FY26, the company said approximately 73 percent of its electricity use was matched with renewable energy across its portfolio. Matching is an accounting mechanism, not a guarantee that data centers run on renewable power at every hour. The company did not disclose its total consumption figure, which makes the 73 percent hard to test.

The two companies have worked together before. The 31MW Mulwala Solar Farm in New South Wales officially opened this week. Construction began in September 2025. The site carries a 100MWh battery and more than 25,000 panels.

McLeod commented on the opening last week: "Having Mulwala operating at full output is an important step for our activities in Australia. We've taken the project through development, construction, energization and commissioning, and we are now delivering renewable electricity in New South Wales." Mulwala is roughly one-twelfth the size of the proposed solar farm alone. The new agreement represents a steep escalation in scale, and in delivery risk.

Who are the parties behind the deal?

AirTrunk was founded in 2018. Blackstone and the Canadian Pension Plan (CPP) acquired the company for US$16.1 billion in 2024, the largest deal in the sector at that time. The company operates and is developing data center campuses in Sydney and Melbourne, Singapore, Hong Kong, Johor in Malaysia, and Tokyo and Osaka in Japan. Earlier this year it acquired Indian operator Lumina CloudInfra, marking its entry into the Indian market.

European Energy, founded in Denmark in 2004, develops solar and wind farms. It reports more than 2GW of projects in operation and development across Australia. The company did not break down how much of that 2GW is operating versus in development.

What remains unanswered?

The announcement leaves several questions open. The parties did not publish investment figures, grid connection timelines beyond broad commissioning years, or capacity allocations between AirTrunk's campuses. Nor did they specify whether the power purchase structure covers the full output of all three projects. AirTrunk's load is growing across nine markets, and the 2030 matching deadline now rests partly on projects that will not energize until the target year itself.