Google LLC to Build New AI Data Center on Tiny Australian Indian Ocean Outpost After Signing Defence Deal

Google LLC plans to build a significant artificial intelligence data center on Christmas Island, a remote Australian external territory in the Indian Ocean, as part of a growing cloud agreement with the Australian Department of Defence. This major initiative, revealed through government documents and official sources in late 2025, highlights the strategic importance of the tiny island located approximately 350 kilometers (220 miles) south of Indonesia.

Though Google has downplayed the size of the project, insights from local government officials and defense analysts indicate the facility will serve as a critical node for AI-enabled naval and regional surveillance activities. The island’s geographic position offers a commanding vantage point for monitoring Chinese submarine and naval operations across vital Indo-Pacific maritime routes including the Sunda, Lombok, and Malacca straits.

Local authorities confirm Google is in advanced stages of leasing land adjacent to Christmas Island’s airport and is arranging energy supplies through partnerships with nearby mining companies. The planned data center is expected to operate on a 7-megawatt power capacity, combining renewable and diesel energy sources to mitigate the island’s limited power infrastructure.

Google’s project dovetails with its wider Australia Connect initiative, which is expanding subsea fiber optic cable networks linking Australia, Christmas Island, and Asia to bolster digital resilience and low-latency cloud services in the Indo-Pacific. The Bosun subsea cable system, part of this infrastructure, is designed to enhance connectivity and support growing demand for high-performance AI cloud computing.

Military strategists underscore Christmas Island’s emerging role as a frontline defense position, particularly for supporting unmanned surveillance and weapon systems. AI-driven command and control capabilities envisioned for the facility are expected to enhance coalition coordination during regional crises, involving Australian, U.S., and Japanese forces.

While environmental concerns persist due to the island’s unique ecosystem—famous for its massive annual red crab migration—officials express optimism that the data center will bring new economic opportunities and technological investments to the local community.

This landmark development positions Google as a major player in integrating advanced AI infrastructure with defense operations in one of the world’s most geopolitically sensitive maritime regions, symbolizing the intersection of commercial cloud innovation and strategic security imperatives.