Data centre plan could bring water into Queensland, minister says

Queensland Water Minister Ann Leahy says rapid industrial growth in the Western Downs could help drive private investment in major infrastructure projects.

She says Murray-Darling Basin buybacks have reduced the water available for industry and agriculture in the region.

The Crisafulli government will examine options for securing new water supplies to support industrial expansion in the Western Downs.

The rapid industrialisation of agricultural lands west of Brisbane could be a catalyst for private sector investment, the Queensland water minister says.

Oil and gas exploration in the Taroom Trough, a proposed $32 billion data centre and the agriculture and feedlot industry based in the Western Downs have been welcomed by the Crisafulli government.

"For that to expand we do need to find new water sources. We have to look at all of the options available," Water Minister Ann Leahy told the ABC.

She said the federal government had "constrained" access to water in the region and that the developments provided scope for investment in projects such as the long-discussed $3.4 billion Nathan Dam.

"Are there options of Nathan Weir? Nathan Dam? What are those options available to us?" Ms Leahy said.

The MP for the vast southern electorate of Warrego blamed the federal government for "taking water away" from the via buybacks in the Murray-Darling Basin.

"Once they take that water out of this region it can no longer be traded back to other industries," Ms Leahy said.

Ms Leahy, who was speaking at an economic forum about the proposed Western Downs Digital Park, said the federal government was "forcing" the state to "go and look at all of the different options that are available for this region to get new water".

Western Downs Mayor Andrew Smith told the ABC last year that Nathan Dam near Taroom was "the most critical water project in modern Queensland history".

The developers behind the proposal for Australia's largest data centre have committed to what they say are "water-neutral operations".

Zerra DC, which has signed an agreement with artificial intelligence giant Anthropic, says its operations will use "air-cooling technology", rainwater harvesting and recycled water from nearby coal-seam gas projects.

The company, which recently signed agreements with builders and state-owned energy company Powerlink, said each of its four proposed buildings would require 21,000 litres of water per day, but would not draw on groundwater or town water.

Water usage has become one of the biggest sticking points for residents in drought-prone agricultural region.

Zerra DC chief data centre officer Matthew Ward said the company had modelled 100 years' worth of rainfall data in Dalby and found the rainwater-first approach held up, even in drought.

"Through all the modelling that we've done, that has more than sufficed for the need," he said.

Environmental accounting expert Michael Vardon said the modelling might work when averaged across a year, but may not stack up in dry months.

The company's backup plan is to truck water into the region, planning documents indicate.

Dr Vardon pointed out that there may be significant indirect water usage due to fossil fuel reliance at the site, which could draw the equivalent of a quarter of the state's energy usage.

The Western Downs Digital Park is set to link to a major substation and three gas-fired power plants, as well as rely on solar, wind and battery storage systems.

The proposed data centre is also situated among one of Australia's largest gas fields, with 12,000 coal seam gas wells in the surrounding region.

"You're simply displacing the water use from the data centre to the coal or gas-fired power plants," Dr Vardon said.

"If you use renewables, wind or solar, then there's no additional water use there."

Zerra DC chief executive David Cooper said the speed of the AI boom posed opportunities and challenges.

"This industry doesn't work in years, months but thinks in weeks and days," Mr Cooper said.

"If we don't do things correctly here, we'll put the future ability to grow this industry in Australia in jeopardy."

Outside the forum in Dalby on Thursday night, a group of protesters from the Western Downs Says Pause action group waved banners and handmade signs.

"We want it to slow it down because we know the correct rules and regulations aren't in place," Angela Prenzler said.

"It seems to be progressing too quickly."