Hyperscale data centre operator AirTrunk has signed an exclusivity agreement with European Energy Australia to progress more than 1GW of renewable energy generation and storage in New South Wales (NSW).

The capacity will support AirTrunk’s regional power requirements, including a proposed data centre campus at Kurri Kurri.

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Both companies are negotiating a potential long-term power purchase agreement linked to proposed assets within the Hunter-Central Coast Renewable Energy Zone.

The planned developments include a 260MW solar farm, an 800+MWh battery storage system scheduled to begin operations in 2030, and an up to 350MW wind project targeted for 2032.

European Energy intends to connect the facilities to Ausgrid’s upgraded 132 kilovolt grids, subject to planning approvals, technical assessments, and final connection arrangements.

The move responds to Australian government expectations for data centres to procure new clean energy generation or storage to cover electricity demand and support network stability.

In addition, the NSW Data Centre Guidelines require operators to fund the extra power capacity and infrastructure their facilities need without passing net expenses on to households, businesses, or local communities.

AirTrunk founder and CEO Robin Khuda 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.”

The renewable energy output is intended to supply AirTrunk’s proposed data centre facility on the former Kurri Kurri smelter site at Loxford. Reusing the industrial parcel will utilise existing infrastructure and create regional employment.

Over the past four months, the company has engaged with residents through project updates, information sessions, and a drop-in centre, with further community discussions planned as planning assessments proceed.

European Energy Australia managing director Catriona McLeod 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.”

In July this year, AirTrunk secured a $2.3bn in green financing to fund the sustainable development of its JHB2 hyperscale data centre campus located in Johor Bahru, Malaysia.