Quantum DC Proposes 1.2GW Data Center and Power Campus Near Adelaide

A 1.2GW data center and energy campus could be built 55km east of Adelaide, under a proposal lodged this week by Australian developer Quantum DC.

The Tungkillo Compute and Energy Hub would sit at 312 Collins Road in Tungkillo, South Australia. Plans call for three data center buildings, two substations, and on-site natural gas-powered turbines. Battery energy storage projects are being developed separately on adjacent land under their own applications.

The campus would be delivered in three stages. Stage one is anticipated to commence operations in 2028, with full build-out completed by 2031.

How would the site be powered?

Quantum said the facility would not rely on diesel generators for back-up power. Instead, the company says wind and solar would supply around 80 percent of the electricity the data center uses. The on-site gas-fired generation would supply the remaining 20 percent.

The company said the gas turbines would only run when "wind and solar output is low," and not continuously. It also noted the hub's on-site generation will supply electricity into the grid at times.

What does the project look like on the ground?

The site covers approximately 220 hectares. Around 120 hectares will be developed, leaving the remaining land undeveloped as grazing land.

The buildings would be built to Tier IV standards. Quantum plans a closed-loop cooling system to reduce water use — a significant point in a state where water access has become a political issue.

What does this change for planning and local opposition?

The approval path runs through South Australia's Essential Infrastructure/Crown assessment pathway. The Minister for Planning will make the final decision on the proposal.

Opposition has already organized. A Change.org petition against the project has gathered more than 1,600 signatures. A Facebook group against the development counts more than 3,300 members.

Sarah Hanson-Young, a South Australian senator for the Greens, criticized the plan in a post: "Our beautiful Adelaide Hills are not the place for a power- and water-hungry data center."

Tungkillo is Quantum DC's first project. The company is led by Melbourne-based real estate developer Alby Tomassi.

A second gigawatt-scale player in the state

Quantum DC is not alone in targeting South Australia for hyperscale compute. Australian AI cloud company Firmus is planning two large sites in the state.

• A campus outside Adelaide at Tailem Bend, 65km south of Tungkillo, could total 1GW across eight buildings, built in phases from next year through 2028.
• A second campus further south at Stirling North would total around 1.3GW.

Together, the three proposals point to more than 3.5GW of potential data center capacity in South Australia alone, a state better known for mining and agriculture than for cloud infrastructure.

For Quantum DC, the immediate test is the Crown assessment process. For residents of the Adelaide Hills, the question is whether a first-time developer can deliver a Tier IV campus at gigawatt scale without straining local power and water supplies. The Planning Minister's decision, when it comes, will set the tone for how the state handles the projects behind it.