Google is reportedly planning to build a significant artificial intelligence data center on Australia’s remote Christmas Island, an outpost in the Indian Ocean.
The development follows a cloud agreement signed with the Defense Ministry earlier this year, according to documents reviewed by Reuters and official interviews.
Details of the facility on the small island, located 350 kilometers south of Indonesia, have not been previously disclosed, and its size, cost and possible uses remain confidential.
Nevertheless, military experts suggest such a center would be a valuable strategic asset, especially as defense officials increasingly see the island as a vital frontline for monitoring China’s submarine and maritime activities in the Indian Ocean.
Google, which is owned by Alphabet, is said to be in advanced negotiations to lease land near the island’s airport for a data centre, including a separate deal with a local mining company to supply its energy, Christmas Island Shire officials and council records show.
Google said the project was part of its broader effort to strengthen its undersea cable infrastructure, aimed at boosting digital resilience across Australia and the Indo-Pacific, while downplaying the scale of the undertaking.
“We are not building a large artificial intelligence data center on Christmas Island,” a Google spokesperson said in a statement to Reuters.
Google is proposing a “future additional cable system” connecting Christmas Island to Asia, planning documents show.
A Christmas Island source, speaking on condition of anonymity, said Google had applied for a long-term power supply contract for a 7 megawatt data center using diesel and renewable energy. Google has not commented on its power requirements.
Google’s proposal to build a data center on Christmas Island includes plans to connect the island to Darwin via an undersea cable, Australia’s Department of Infrastructure has confirmed.
“The department is in discussions with Google to ensure energy requirements for the proposed project are met without affecting supply to local residents and businesses,” it said in a statement to Reuters.
The Australian Ministry of Defense has not commented.
A recent tabletop war game involving the Australian, US and Japanese militaries highlighted Christmas Island’s role as a forward line of defense for Australia in any regional conflict, particularly its advantages for launching unmanned weapon systems or drones.
Brian Clark, a former US Navy strategist who ran war games, said having a forward “command and control” node on Christmas Island would be critical in a crisis with China or another adversary.
Clarke, now a fellow at the Hudson Institute, told Reuters: “The data center will partly enable you to do the kinds of AI-powered command and control that you’ll need to do in the future, especially if you rely on unmanned systems for surveillance missions and targeting missions and even engagements.”
Submarine cables provide more bandwidth and more reliability for communications than satellites, he said, because China is expected to disrupt satellite or Starlink communications in a crisis.
“If you have a data center at Christmas, you can do a lot of these things through cloud infrastructure,” he added.
The Australian Department of Defense signed a three-year cloud contract with Google in July. The British military recently announced a similar deal with Google Cloud, which it says will increase intelligence sharing with the United States.
Last month, Google applied for Australian environmental permits to build the first undersea cable that would connect Christmas Island to the northern Australian city of Darwin, where US Marines are stationed for six months of the year.
Christmas Island Shire President Steve Pereira said his government was considering the impact of the proposed data center on the community before finalizing construction.
The 135-square-kilometer (52-square-mile) island, best known as a detention center for asylum seekers and the annual migration of millions of red crabs, until recently struggled with poor communications and its 1,600 residents lacked job opportunities.
“There’s support for it, the provision of this data center actually goes back to the community with infrastructure, employment and adding economic value to the island,” he said.
Residents are concerned about the impact the facility could have on energy supplies on the island, which is 1,500 kilometers from mainland Australia and relies on diesel to supplement limited renewable energy.
The Department of Infrastructure said the Google project is in line with the Australian government’s aim to diversify the island’s economy away from mining.
Referring to the island’s unique environment, the spokesperson said: “To continue the project, all environmental and other planning requirements must be met.
Two Christmas Island sources and one defense source said the data center would be of commercial interest to Google because of its location in the Indian Ocean between Africa, Asia and Australia, as well as its possible defense uses.
Another recent war game on Christmas Island involved the rapid deployment of the US advanced HIMARS missile system from Darwin, which drew mixed reactions from residents.
Pereira said some anti-war protesters feared the impact on tourism, while businessmen hoped increased defense activity would boost the economy.
He said: We are a strategic asset for defense.
“There are many industries on the island that we need to protect, all of which will be closely considered for any new project – whether it’s defense or Google,” he added.
Retired Navy Commodore Peter Levy, who lived on the island as a student, told Reuters he has taken several Australian defense groups to Christmas Island since last year to build community support for defense activities.
“Christmas Island is perfect for at least monitoring what’s going through the Straits of Sunda, the Straits of Lombok, the Straits of Malacca. It’s a really good place.”
