Beetaloo Digital, a subsidiary of Beetaloo Energy, has been given a commitment by the NT Government for 185 hectares of land at Weddell to develop a claimed $40 billion, two gigawatt AI data centre and energy mega-campus, which critics say is the latest glimpse of the Territory’s “dystopian future”, while the government has refused to explain if it has a plan for managing data centre development.

The proposed Weddell facility, approximately 30km south of Darwin, will be powered by up to two gigawatts of “on-site gas-fired generation”, the company said, with gas supplied via pipeline from its Beetaloo operations.

Beetaloo Energy said it expects the data centre project to attract $40 billion in private investment “at full development” – nearly the same cost of building the Ichthys LNG plant – while creating an estimated 5,000 construction jobs and “as many as 350 long-term operational jobs”.

The 2GW data centre has been estimated to consume enough power to supply between 1.5 and 2 million homes each year and follows Energy North’s Project Ares, which aims to set up a one gigawatt facility at Murranji station in the Barkly region.

The Finocchiaro CLP Government stated again on Wednesday that up to 12 data centre developers have been in contact about building the controversial projects here, but have yet to explain to the public what its overall plan is for managing data centre development or with whom they are consulting to ensure Territorians’ best interests come before companies’ interests.

Data centres have become controversial across the world for their massive electricity and water consumption, with concerns also raised around noise and other pollution, as well as the limited economic returns once constructed.

Independent Member for Johnston Justine Davis asked in Parliament on Wednesday what advice the government received and what evidence it was relying on regarding data centres before committing the land at Weddell to Beetaloo Digital, but did not receive a clear answer.

Chief Minister Lia Finocchiaro repeated that “data centre operators and investors are literally banging down the door…because they understand that there is going to be a safe, reliable, affordable pipeline of energy [from the Beetaloo Sub-basin] in the Northern Territory for way longer than any of us are going to be alive”.

She handballed the question to Lands, Planning and Environment Minister Josh Burgoyne, who repeated the government’s lines about overwhelming interest, adding that “people out there want to know how to get their hands on land as well”.

“People are lining up and they all want to know how can we invest in the Northern Territory, how can we work with the Northern Territory Government to take advantage of all the amazing resources we have here,” he said, without mentioning how those resources would be protected and effectively managed.

Mr Burgoyne, who continued not to answer the question, added that Beetaloo Digital was granted exclusive rights over the 185 acres at Weddell for one year and that the government expected the company to “do all the necessary studies [and] that they get their investors on board” in that time.

“If they’re not going to get a wiggle on, we know that thanks to the hard work of Minister [Robyn] Cahill, we have other investors lining up keen to take that on,” Mr Burgoyne said.

“The message could not be clearer from our government: the Territory is open for business.”

Business Minister Robyn Cahill was ridiculed on the national stage for suggesting last week that the Northern Territory has so much water in underground aquifers that it should be throwing free water at data centre developers or risk tilting the earth’s axis, which scientists roundly rejected as untrue and a mischaracterisation of available water data.

Environment Centre NT executive director Kirsty Howey said the CLP Government’s plans for a dozen data centres powered by fracked gas was a “dystopian future” that would drain the Territory’s water supplies.

“Today’s media release about plans for another massive hyperscale AI data centre in Darwin’s beautiful rural [area] does not even mention water, which is life in the Northern Territory,” she said.

“This is just the beginning. The Finocchiaro Government wants to dump a dirty dozen of data centres in our communities.”

‘Territorians don’t want data centres’: ECNT

ECNT’s rural area campaigner Pauline Cass said the Darwin rural area is “under threat” from all of the government’s planned projects, including data centres, the AROWS Dam project, the Middle Arm industrial precinct, large residential developments and other proposed developments.

“There is zero community consent for these projects. They are being forced upon us,” she said.

“People in the rural areas love the lifestyle and don’t want it destroyed by water-guzzling and noisy AI data centres.

“The government doesn’t seem to understand that Territorians don’t want AI data centres draining our underground reservoirs and supporting the fracked gas industry while we get nothing in return.”

ECNT is also calling for transparency over how the government reached an exclusive commitment to offer the 185 hectares of land at Weddell and what it is doing to manage its stated ambitions of becoming the “data centre capital of the globe”.

Beetaloo Energy managing director Alex Underwood said data centres are “essential infrastructure for the digital economy, driving investment, innovation and new industry”.

“The Finocchiaro CLP Government’s decision gives Beetaloo Energy the certainty to advance the next phase of this major project and strengthens the Territory’s position as a future hub for digital infrastructure and investment,” he said.

It is unclear what else the government may have offered Beetaloo Energy to advance its data centre project.

Mr Underwood told ABC Radio that the project was at “day one” and would require more government approvals, as well as financing, before being construction proceeded. He added the company would hold town hall meetings and “open up consultation lines for people to share their questions and concerns with us”.

He did not say what water allocations the project would require.

Prime Minister Anthony Albanese last week committed to establishing a “new set of standards” for artificial intelligence, including clear rules for data centre development to “make sure that Australia’s national interests are protected”. He said a national cabinet meeting scheduled for next month will seek agreement from all state premiers and territory chief ministers on how best to establish those standards.