Blackstone-backed AirTrunk is set to make a major expansion in Australia with a US$3.4 billion (A$5 billion) investment to build a new hyperscale data center in Melbourne. The facility, named MEL2, will be located in the city’s northwest and add 354 megawatts of capacity, bringing AirTrunk’s total capacity in Melbourne to 630 megawatts.
This move comes amid growing demand for cloud computing and AI infrastructure, as Australia positions itself as a global hub for artificial intelligence. AirTrunk’s CEO, Robin Khuda, emphasized that the project will not only support the country’s AI ambitions but also create thousands of construction and local jobs. With this expansion, AirTrunk will operate five data centers nationwide, further strengthening its presence in the Asia-Pacific region.
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MEL2: Expanding Capacity in Melbourne
The Sydney-based company will construct a 354-megawatt facility in Melbourne’s northwest, named MEL2. Once completed, the project will raise AirTrunk’s total capacity in Australia’s second-largest city to 630 megawatts, bringing its total investment in Melbourne to over A$7 billion.
Robin Khuda, CEO of AirTrunk, said in a statement, “Australia has set bold ambitions to become a global AI hub, and demand for AI-ready infrastructure continues to grow. We’re expanding in Melbourne to support Australia’s AI future while creating new opportunities for local businesses and communities.”
Job Creation and Regional Growth
The MEL2 project will be AirTrunk’s fifth data center in Australia, bringing the company’s national capacity to more than 1.2 gigawatts. Construction is expected to generate over 4,000 jobs across multiple phases, though the company has not disclosed a completion date.
Khuda emphasized the importance of strong financial backing for large-scale AI infrastructure, stating, “AI data centers require significant upfront investment. AirTrunk’s strong balance sheet and proven regional track record help give global AI customers confidence in reliable, on-time deployment in Australia.”
Global Expansion and Industry Context
AirTrunk is rapidly scaling its operations across the Asia-Pacific region. Last week, the company announced plans to invest up to US$8 billion in a new hyperscale data center in West Osaka, Japan, called OSK2, which will initially provide 100 megawatts and expand to 530 megawatts over several years.
Data centers remain one of the fastest-growing industries worldwide, driving a wave of large-scale investments in Australia. Earlier this month, NextDC and OpenAI announced a US$4.6 billion data center project in Sydney. In June, Amazon unveiled plans to invest US$13 billion through 2029 in data centers across the country. Last year, Blackstone led a consortium to acquire AirTrunk in a US$16 billion deal, marking the largest transaction in the region’s data center sector to date.
Frequently Asked Questions
How many jobs will the MEL2 project create?
The multi-phase construction of MEL2 is expected to create more than 4,000 jobs.
How many data centers does AirTrunk operate in Australia?
With MEL2, AirTrunk will operate five data centers across Australia, totaling more than 1.2 gigawatts of capacity.
When will the MEL2 data center be completed?
AirTrunk has not yet provided a specific completion date for MEL2.
Has AirTrunk expanded internationally?
Yes. AirTrunk recently announced plans to invest up to US$8 billion in a hyperscale data center in West Osaka, Japan (OSK2), which will initially provide 100 megawatts and expand to 530 megawatts.
Who owns AirTrunk?
AirTrunk is backed by Blackstone, the U.S. private equity giant, which acquired the company last year in a US$16 billion deal.
How does this investment fit into Australia’s data center industry?
Australia is seeing rapid growth in data center infrastructure, driven by global cloud and AI demand. Other major investments include a US$4.6 billion NextDC-OpenAI project in Sydney and Amazon’s US$13 billion nationwide data center investment plan through 2029.
Conclusion
AirTrunk’s $3.4 billion MEL2 project marks a significant milestone in Australia’s push to become a global hub for AI and cloud computing. By expanding its Melbourne footprint, the company not only strengthens its national and regional presence but also contributes to job creation and local economic growth.
