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AirTrunk to build second data centre campus in Melbourne
Australian platform set to expand capacity to over 1.2GW as demand for AI infrastructure continues to grow
The Asset   24 Dec 2025

Australia-based hyperscale data centre operator AirTrunk has acquired a new site in Melbourne’s northwest suburb for its second campus in the city, to be known as MEL2.

With over 354-megawatt capacity, MEL2 will add more than A$5 billion ( US$3.35 billion ) in new direct investment and lift the company’s total deployable capacity in Melbourne to over 630MW. Across MEL1 and MEL2, AirTrunk’s investment in the city’s digital infrastructure will exceed A$7 billion, delivering one of the largest economic and productivity boosts to the southeastern state of Victoria.

MEL2 will create over 4,000 jobs during the multi-phase construction and over 200 direct jobs once operational. In addition, AirTrunk will boost the local supply chain, creating in excess of 1,000 full-time jobs to support its data centres.

The new site will complement AirTrunk’s existing Australian campuses, giving global AI and cloud customers greater geographical diversity across the Sydney and Melbourne markets.

Global AI hub ambitions

AirTrunk will operate five campuses nationally – SYD1 ( 121 MW+ ), SYD2 ( 158 MW+ ), SYD3 ( 330 MW+ ), MEL1 ( 276 MW+ ) and MEL2 ( 354 MW+ ) – delivering a combined capacity of more than 1.2 gigawatts.

AirTrunk founder and chief executive officer Robin Khuda comments: “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.

“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.”

AirTrunk’s expansion in Melbourne follows last week’s announcement of a new hyperscale campus in Osaka, Japan, delivering up to 100MW of IT load in Japan and over A$3 billion in new direct investment in the market.

OSK2 and MEL2 – which will become AirTrunk’s 14th and 15th data centres, respectively – expand the company’s hyperscale platform to deliver a total capacity in excess of 2.6 GW across six markets in Asia-Pacific and the Middle East: Australia, Singapore, Japan, Malaysia, Hong Kong and Saudi Arabia.

Supporting national goals

AirTrunk’s Melbourne expansion comes as Australia advances its National AI Plan, released in late 2025, which outlines the country’s ambition to become a global hub for artificial intelligence. The plan is built around three pillars: capturing the opportunity through investment in infrastructure and skills, spreading the benefits across industries and communities, and keeping Australians safe through responsible AI governance.

By delivering a new hyperscale data centre in Melbourne, AirTrunk says, it is directly supporting these national goals, enabling smarter government services, faster business innovation, and stronger human connection, while creating opportunities for local talent and suppliers.

More broadly, the data centre industry is a powerful driver of Australia’s digital economy. It generates A$12.6 billion in gross value-added per terawatt-hour of energy consumed, outperforming sectors such as mining and manufacturing.

Data centres also consume less than 0.1% of Australia’s water, and by 2030, will have invested up to A$1.1 billion in recycled water infrastructure. Since 2020, the industry has invested A$3.1 billion in grid infrastructure, with total investment expected to reach A$7.2 billion by 2030, reinforcing its role as a cornerstone of sustainable growth, the company says.