Google's Strategic AI Data Centre Development on Christmas Island: Balancing Defence and Commercial Interests

Google submitted an application last month seeking Australian environmental approvals to construct the initial subsea cable connection.

Google is planning to establish a substantial artificial intelligence data centre on Christmas Island, Australia's isolated Indian Ocean territory, following a cloud agreement signed with the Australian Department of Defence earlier this year, according to documents examined by Reuters and interviews with officials.

The previously undisclosed plans for this data facility on the small island, situated 350 km south of Indonesia, remain largely confidential, including specific details about its dimensions, investment value, and potential applications.

Military experts suggest that such an installation would represent a strategic asset on the island, which defence officials increasingly view as a crucial frontline position for monitoring Chinese submarine and naval activities throughout the Indian Ocean region.

Google has reached advanced stages in negotiations to lease property near Christmas Island's airport for constructing the data hub, including an arrangement with a local mining operation to address its energy requirements, as confirmed by Christmas Island Shire officials to Reuters and documented in council meeting records.

Alphabet Inc-owned Google declined to provide comments regarding this matter.

Australia's Department of Defence offered no statement in response.

A recent strategic simulation exercise involving Australian, American, and Japanese military forces highlighted Christmas Island's significance as a forward defence position for Australia in potential regional conflicts, particularly emphasizing its advantages for deploying unmanned weapons systems.

Bryan Clark, formerly a US Navy strategist who directed the war games, explained that establishing a forward "command and control" node on Christmas Island would be essential during a crisis involving China or another adversary.

"The data centre partly enables the implementation of AI-enhanced command and control capabilities necessary for future operations, especially when relying on unmanned systems for surveillance, targeting, and even engagement missions," Clark, currently a Hudson Institute fellow, informed Reuters.

Subsea cables deliver superior bandwidth for communications compared to satellites, along with greater reliability, as China would likely attempt to disrupt satellite communications or Starlink services during a crisis, he noted.

"With a data centre on Christmas Island, much of those operations can be conducted through cloud infrastructure," he added.

Australia's defence department initiated a three-year cloud partnership with Google in July. The British military recently announced a comparable Google cloud arrangement, which it indicated would enhance intelligence sharing with the United States.

Google recently applied for Australian environmental approvals to construct the first subsea cable linking Christmas Island to Darwin in northern Australia, where US Marine Corps personnel are stationed for six months annually.

Documents reveal that the cable connection to Darwin will be installed by US company SubCom. Reuters has previously reported that SubCom, which serves as the exclusive undersea cable contractor for the US military, had previously connected the US/UK military base at Diego Garcia in the Indian Ocean to a cable extending from Australia to Oman.

Christmas Island Shire President Steve Pereira stated that his administration is evaluating the community impact of the proposed data centre before granting final construction approval.

The 135 square km island, primarily known for its asylum seeker detention facility and the annual migration of millions of red crabs, has historically struggled with inadequate telecommunications infrastructure, and its 1,600 residents face limited employment opportunities.

"There is community support for this project, provided the data centre contributes to the community through infrastructure improvements, job creation, and adding economic value to the island," he said.

Two sources from Christmas Island and one defence source indicated that the data centre offers commercial advantages to Google due to its strategic Indian Ocean position between Africa, Asia, and Australia, alongside its potential defence applications.

Another recent military exercise on Christmas Island involved the swift deployment of an advanced US HIMARS truck-mounted rocket system from Darwin, which generated mixed reactions among local residents.

Some anti-war protesters expressed concerns about impacts on tourism, while business owners anticipate that increased defence activities could strengthen the local economy, according to Pereira.

"We represent a strategic asset for defence operations," he stated.

"We must protect the various industries on the island, and all these factors will be carefully considered for any new projects, whether related to defence or Google," he added.

Retired Navy Commodore Peter Leavy, who resided on the island as a student, told Reuters that he has brought several Australian defence groups to Christmas Island since last year, aiming to build community support for defence-related activities.

"Christmas Island occupies an advantageous position for monitoring maritime traffic through the Sunda Strait, Lombok Strait, and Malacca Straits. It truly provides an excellent strategic location."