Exclusive: Google to Build Secretive AI Data Center on Australia’s Remote Christmas Island

Exclusive: Google Plans AI Data Center on Remote Christmas Island After Defense Cloud Deal

Google is planning to build a massive artificial intelligence data center on Australia’s remote Christmas Island in the Indian Ocean, according to documents reviewed by Reuters and interviews with officials. The move comes after the tech giant signed a cloud services agreement with Australia’s Department of Defence earlier this year.

The previously undisclosed project involves constructing the facility on a small island located about 350 km (220 miles) south of Indonesia. Many of the project’s details—including its estimated cost, scale, and purpose—remain classified.

Defense analysts say such a facility would be strategically significant, enhancing Australia’s ability to monitor Chinese submarine and naval activity across the Indian Ocean.

Local officials from the Shire of Christmas Island told Reuters that Google is negotiating to lease land near the island’s airport for the data hub and has reached a preliminary energy supply agreement with a nearby mining company. Council meeting records confirm these discussions.

Alphabet-owned Google (GOOGL.O) described the project as part of its broader effort to strengthen digital resilience across Australia and the Indo-Pacific through undersea cable infrastructure—while downplaying reports of a large-scale AI center.

“We are not building a ‘large artificial intelligence data center’ on Christmas Island,” a Google spokesperson told Reuters, adding that further information would be shared in due course.

Planning documents indicate that Google also intends to link Christmas Island to Asia via an “additional future cable system.”

A source familiar with the project said Google sought a long-term energy deal for a 7-megawatt data facility powered by both diesel and renewable sources. The company declined to comment on its specific power needs.

Australia’s Department of Infrastructure confirmed that Google’s proposal includes both a data center and an undersea cable connection linking Christmas Island to Darwin.

“The department is working with Google to ensure the project’s energy demands are met without impacting local residents or businesses,” it said in a statement.

The Defence Department declined to comment.

Strategic Frontline for Defence

Recent tabletop war games involving Australian, U.S., and Japanese forces underscored Christmas Island’s potential as a forward defense base in any regional conflict—particularly for deploying unmanned weapon systems and drones.

Bryan Clark, a former U.S. Navy strategist who led the exercises, said the island could serve as a crucial “command and control” node during a crisis with China or other adversaries.

“A data center enables future AI-driven command and control, particularly when operations depend on unmanned systems for surveillance, targeting, and even combat,” said Clark, now a senior fellow at the Hudson Institute.

He noted that subsea cables provide greater bandwidth and reliability than satellites—whose communications could be disrupted during a conflict.

“If you have a data center on Christmas Island, you can do a lot through cloud infrastructure,” he added.

Australia’s Defence Department signed a three-year cloud agreement with Google in July. The British military recently announced a similar deal, saying it would enhance intelligence sharing with the U.S.

Google also applied last month for environmental approval to build the first undersea cable linking Christmas Island to Darwin—home to a rotating U.S. Marine Corps presence.

Community Concerns and Economic Hopes

Steve Pereira, president of the Shire of Christmas Island, said the administration is reviewing the project’s community impact before granting final approval.

Covering 135 square kilometers (52 square miles), the island is best known for its refugee detention center and the annual migration of millions of red crabs. It has long struggled with poor telecommunications and limited job opportunities for its 1,600 residents.

“There’s community support, provided the data center genuinely delivers infrastructure, employment, and economic value to the island,” Pereira said.

Residents are also concerned about the project’s potential strain on the island’s power supply, which relies heavily on diesel supplemented by small-scale renewables.

The Infrastructure Department said the initiative aligns with the federal goal of diversifying the island’s economy away from mining.

“All environmental and planning requirements will need to be met before the project can proceed,” the department said, noting the island’s fragile ecosystem.

Multiple sources told Reuters the project is commercially attractive to Google, given Christmas Island’s strategic location between Africa, Asia, and Australia—and its potential defense applications.

A recent military drill on the island involving the rapid deployment of a U.S. HIMARS rocket system from Darwin drew mixed local reactions.

“We’re a strategic asset for defense,” Pereira said. “Any new project—whether military or Google’s—will be assessed closely for its community and environmental impact.”

Retired Navy Commodore Peter Levy, who once lived on the island as a student, told Reuters he has brought several Australian defense groups to Christmas Island in the past year to build community support for expanded defense activity.

“Christmas Island is perfectly placed to monitor movements through the Sunda, Lombok, and Malacca straits,” Levy said. “It’s a very good location.”