Google is planning to build a major artificial intelligence data centre on Australia’s remote Indian Ocean territory, Christmas Island, according to documents reviewed by Reuters and interviews with officials. The project follows a cloud services agreement signed earlier this year between Google and Australia’s Department of Defence.
Strategic Outpost With Military Significance
Christmas Island, located about 350 kilometres south of Indonesia, is gaining attention from defence planners who see it as a key frontline for monitoring Chinese naval activity in the Indian Ocean. Military experts say a data facility there would strengthen regional defence capabilities, especially in intelligence and surveillance operations.
Local officials confirmed that Google is in advanced talks to lease land near the island’s airport and is negotiating with a local mining company to secure energy for the project. However, details such as cost, capacity, and timeline remain undisclosed.
Neither Google nor Australia’s Department of Defence commented on the plan.
Enhancing Defence And AI Capabilities
The project aligns with Australia’s growing focus on military readiness in the Indo-Pacific. A recent joint war game involving Australian, U.S., and Japanese forces highlighted Christmas Island’s strategic role as a forward base for uncrewed systems and AI-driven defence operations.
Bryan Clark, a former U.S. Navy strategist who led the exercises, told Reuters that an AI-enabled “command and control” node on the island could be vital in a future conflict. “If you’ve got a data centre on Christmas, you can do a lot of that through cloud infrastructure,” he said, adding that subsea cables provide more secure and reliable communication than satellites, which could be jammed in a crisis.
Google recently applied for environmental approval to build a subsea cable connecting Christmas Island to Darwin, home to a U.S. Marine Corps rotation. The link will be installed by U.S. firm SubCom, which has previously worked on military cable systems across the Indian Ocean.
Balancing Defence Strategy And Local Impact
Christmas Island’s Shire President, Steve Pereira, said the community is assessing how the project would affect local life before granting final approval. The island, home to around 1,600 residents, has long faced limited connectivity and job opportunities. Pereira said there is cautious support for the project as long as it benefits the local economy.
“There is support for it, providing this data centre actually does put back into the community with infrastructure, employment and adding economic value to the island,” he said.
Defence and local sources also noted that the island’s position between Africa, Asia and Australia gives the project both commercial and strategic importance.
Some residents have raised concerns about militarisation and the potential impact on tourism, while others see economic opportunity in growing defence activity. “We are a strategic asset for defence,” Pereira added, noting that all proposals will be weighed carefully.
Retired Navy Commodore Peter Leavy, who has helped build community understanding of the island’s defence role, said its location allows close monitoring of key maritime routes including the Sunda, Lombok and Malacca Straits. “It is a really good location,” he said.
(with inputs from Reuters)
