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Google is reportedly planning to establish a substantial artificial intelligence data centre on Australia’s remote Christmas Island, an Indian Ocean outpost. This development follows a cloud agreement signed earlier this year with the Department of Defence, according to documents reviewed by Reuters and official interviews. Details surrounding the facility on the tiny island, located 350 km south of Indonesia, have not been previously disclosed, with its projected size, cost, and potential uses remaining confidential. Nevertheless, military experts suggest such a centre would be a valuable strategic asset, particularly as defence officials increasingly view the island as a critical frontline for monitoring Chinese submarine and naval activity in the Indian Ocean. Alphabet Inc-owned Google is said to be in advanced negotiations to lease land near the island’s airport for the data hub, including a separate agreement with a local mining company to secure its energy requirements, Christmas Island Shire officials and council records indicate. Google stated the project forms part of its broader efforts to enhance subsea cable infrastructure, aiming to boost digital resilience across Australia and the Indo-Pacific, while downplaying the scale of the undertaking. "We are not constructing 'a large artificial intelligence data centre' on Christmas Island," a Google spokeswoman said in a statement to Reuters, adding more details would be shared soon. Planning documents show Google proposes an "additional future cable system" connecting Christmas Island to Asia. A Christmas Island source, who declined to be named, said Google had requested a long-term energy supply deal for a 7 megawatt data centre, using diesel and renewable power. Google did not comment about its power requirements. Australia's Department of Infrastructure confirmed Google's proposal was to establish a data centre on Christmas Island and included plans to connect the island to Darwin via a subsea cable. "The department is in discussions with Google to ensure energy requirements for the proposed project are met without impacting supply to local residents and businesses," it said in a statement to Reuters. Australia's Department of Defence had no comment. A recent tabletop war game involving the Australian, US and Japanese militaries highlighted Christmas Island's role as a forward line of defence for Australia in any regional conflict, particularly its advantages for launching uncrewed weapons systems, or drones. Bryan Clark, a former US Navy strategist who ran the war games, said having a forward "command and control" node on Christmas Island would be critical in a crisis with China or another adversary. "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 and even engagements," Clark, now a Hudson Institute fellow, told Reuters. Subsea cables provide more bandwidth for communication than a satellite, and greater reliability, because China would be expected to jam satellite communications or Starlink in a crisis, he said. "If you've got a data centre on Christmas, you can do a lot of that through cloud infrastructure," he added. Australia's defence department entered into a three-year cloud agreement with Google in July. Britain's military recently announced a similar Google cloud deal, which it said will boost intelligence sharing with the United States. Google applied last month for Australian environmental approvals to build the first subsea cable connecting Christmas Island to the northern Australian city of Darwin, where the US Marine Corps are based for six months of the year. Christmas Island Shire President Steve Pereira said his administration is examining the community impact of the proposed data centre before giving final construction approval. The 135 square km (52 square mile) island, best known for its asylum seeker detention centre and annual migration of millions of red crabs, has until recently struggled with poor telecommunications and its 1,600 residents lack job opportunities. "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," he said. Residents are concerned at the impact the centre may have on energy supplies on the island, which is 1,500 km from mainland Australia and relies on diesel to supplement limited renewables. The Department of Infrastructure said the Google project aligned with the Australian government's goal of diversifying the island's economy away from mining. "All environmental and other planning requirements will need to be met for the project to proceed," the spokesperson said, noting the island's unique environment. Two Christmas Island sources and a defence source said the data centre was of commercial benefit to Google because of the Indian Ocean location between Africa, Asia and Australia, as well as its potential defence uses. Another recent war game on Christmas Island involved the rapid deployment of an advanced US HIMARS truck-mounted rocket system from Darwin, which drew a mixed response from residents. Some anti-war protesters were fearful of the impact on tourism, while business people are hopeful increased defence activity will boost the economy, Pereira said. "We are a strategic asset for defence," he said. "There are many industries on the island we have to protect, all of this will be closely considered for any new projects - whether it be defence or Google," he added. Retired Navy Commodore Peter Leavy, who lived on the island as a student, told Reuters he has taken several Australian defence groups to Christmas Island since last year, seeking to build community support for defence activities. "Christmas Island is quite well positioned to at least monitor what is going through Sunda Strait, Lombok Strait, Malacca Straits. It is a really good location."
