AirTrunk to invest AUD $5bn in new Melbourne AI campus

AirTrunk plans a second hyperscale data centre campus in Melbourne, committing more than AUD $5 billion in new direct investment and significantly expanding its Australian footprint for artificial intelligence and cloud workloads.

The company has acquired a site in Melbourne's north-west for the new campus, which will be known as MEL2. AirTrunk expects the facility to deliver more than 354MW of capacity.

The expansion will lift AirTrunk's total deployable capacity in Melbourne to over 630MW across its existing MEL1 campus and the new MEL2 site. The company said its combined investment in Melbourne's digital infrastructure will exceed AUD $7 billion.

AirTrunk will operate five campuses in Australia once MEL2 is developed. The portfolio will comprise SYD1 with more than 121MW, SYD2 with more than 158MW, SYD3 with more than 330MW, MEL1 with more than 276MW and MEL2 with more than 354MW, for a total of more than 1.2GW of capacity.

AirTrunk positions MEL2 as a response to rising demand from global AI and cloud providers. The company focuses on large-scale facilities that host cloud and technology companies across the Asia Pacific and Middle East regions.

"Australia has set bold ambitions to become a global AI hub, and demand for AI ready infrastructure continues to grow. MEL2 is part of our response. Working closely with Invest Victoria, we're expanding in Melbourne to support Australia's AI future while creating new opportunities for local business and communities," said Robin Khuda, Founder & CEO, AirTrunk.

"AI data centres require significant upfront investment, and AirTrunk's strong balance sheet and proven regional track record help give global AI customers confidence in reliable, on-time deployment in Australia," said Khuda.

Jobs and supply chain

AirTrunk expects MEL2 to create more than 4,000 jobs during multi-phase construction. The company forecasts more than 200 direct roles once the campus is operational.

The group said the project will also underpin the local supply chain. It expects more than 1,000 full-time jobs in suppliers and contractors that support its data centres.

The Victorian government has sought to attract more digital infrastructure and AI-related investment. The state positions Melbourne as a key location for cloud services and data-intensive industries.

"Victoria is leading Australia's digital transformation, and investments like this will strengthen our state's position as a hub for cloud and AI innovation, create thousands of jobs, and deliver sustainable infrastructure that supports our growing technology ecosystem," said Victorian Premier, the Hon. Jacinta Allan.

National and regional push

The Melbourne expansion follows AirTrunk's recent move into Osaka, Japan. The company announced a new hyperscale campus there that is planned to provide up to 100MW of IT load and more than AUD $3 billion in new direct investment.

OSK2 in Osaka and MEL2 in Melbourne will become AirTrunk's 14th and 15th data centres. The new sites will increase the company's platform to more than 2.6GW of total capacity across six markets: Australia, Singapore, Japan, Malaysia, Hong Kong and Saudi Arabia.

Australia is advancing a National AI Plan that sets an ambition for the country to act as a global hub for artificial intelligence. The plan outlines investment in infrastructure and skills, diffusion of benefits across industries and communities, and a framework for responsible AI governance.

AirTrunk links the MEL2 development with this national policy direction. The company said the new campus will underpin digital services for government and business and will create more roles for local talent and suppliers.

Industry economics

AirTrunk highlighted wider economic impacts from the data centre sector. It cited industry analysis that estimated data centres generate AUD $12.6 billion in gross value added per terawatt-hour of energy consumed, above sectors such as mining and manufacturing.

The sector currently accounts for less than 0.1% of Australia's water consumption, according to the same analysis. Industry participants are forecast to invest up to AUD $1.1 billion in recycled water infrastructure by 2030.

Since 2020, data centre operators have invested about AUD $3.1 billion in grid infrastructure. The total is projected to reach AUD $7.2 billion by 2030, as operators expand capacity and connect new sites.

AirTrunk strategy

AirTrunk established one of the first hyperscale-focused data centre businesses in Australia and the wider Asia Pacific region in 2015. The group continues to emphasise large campus developments near major metropolitan and network hubs.

The company has also experimented with new cooling methods for dense AI workloads. It said it was the first data centre operator in the Asia Pacific region to deploy large-scale direct-to-chip liquid cooling technology at its JHB1 campus in Malaysia.

AirTrunk remains privately held and concentrates on expansion across its existing markets. In 2024, Blackstone and Canada Pension Plan Investment Board acquired the company alongside founder Robin Khuda in a deal that valued AirTrunk at more than AUD $24 billion.

The company said it is well capitalised and is positioned to triple its planned Australian capacity in the near term as it pursues further development projects and adds phases at existing campuses.