Alphabet to Build AI Data Center on Australia's Remote Christmas Island

This article first appeared on GuruFocus.

Alphabet (GOOGL, Financials) is preparing to build a new artificial intelligence data center on Australia's remote Christmas Island, according to documents reviewed by Reuters. The move follows a cloud agreement Google signed earlier this year with Australia's Department of Defence.

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The facility is expected to support both commercial and defense cloud operations. Local officials said Google is negotiating to lease land near the island's airport and has sought long-term energy supply arrangements for the project.

Although Google downplayed its scale, planning documents describe a 7-megawatt site that would connect to Asia through future subsea cable infrastructure.

Military analysts say the location has strategic importance, offering Australia a forward position for data and command systems in the Indian Ocean. The island's limited power supply and environmental sensitivity remain local concerns, but officials believe the project could bring jobs and investment to the small community.

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