Queensland to review water options amid Western Downs expansion
A proposed A$32 billion data centre has put water demand under scrutiny, with its developer proposing rainwater harvesting and recycled supplies.

Queensland will investigate additional water supplies for expanding Western Downs industries, with Water Minister Ann Leahy suggesting private investment could help fund infrastructure as a proposed A$32 billion data centre advances.
Speaking at an economic forum in Dalby, Leahy identified Nathan Weir and the A$3.4 billion Nathan Dam among possible options. She said agriculture, feedlots and oil and gas development needed more water, and blamed federal Murray-Darling Basin buybacks for limiting supplies available locally.
Water demand has become a concern for residents considering the Western Downs Digital Park proposal in the drought-prone farming region. Developer Zerra DC says it is committed to operating on a water-neutral basis through air cooling, rainwater collection and recycled supplies sourced from nearby coal-seam gas projects.
The company puts daily water requirements at 21,000 litres for each of four planned buildings. It says it will use neither town supplies nor groundwater. Chief data centre officer Matthew Ward said modelling using 100 years of Dalby rainfall supported prioritising rainwater, including through drought.
Environmental accounting expert Michael Vardon questioned whether modelling based on yearly averages would remain reliable during dry months. Planning documents list water deliveries by truck as a backup.
Vardon also raised potential indirect water demand from fossil-fuel power generation. Plans include connections to a major substation and three gas-fired plants, with solar, wind and battery storage also supplying the development.
Members of Western Downs Says Pause demonstrated outside the forum. Protester Angela Prenzler sought a slower process, saying suitable regulations were not yet in place.



