Utility provider ActewAGL is behind a proposal to construct a $1 billion "data city" to create massive computer storage in what would be one of the most significant infrastructure projects undertaken in Canberra.
ActewAGL has formed Canberra Technology City with partners Galileo Connect, a giant British-based data company, and Technical Real Estate to establish two 24-hour data hubs at Hume and Belconnen.
The consortium also wants to build a gas-powered generator at Hume, capable of trebling the data centre industry standard for power output.
Excess power would go into the energy grid and the generator, combined with a bigger capacity gas pipeline, would help Canberra through peak winter and summer periods.
As well as providing valuable energy back-up, the venture would create 600 jobs.
The consortium sees a market in the sudden and dramatic rise in demand for electricity to power computer hardware. The development would offer huge computer storage suitable for global financial institutions and governments.
The consortium is about to embark on a roadshow to sell the concept to companies throughout Australia and the Asia-Pacific region, including Hong Kong and Singapore. Technical Real Estate director Bruce McEwen said the consortium was proposing 20 "next generation" data buildings at the Hume hub and 10 supplementary ones at Belconnen for companies demanding dual sites for production, back-up and recovery purposes.
Rapid growth in demand for power for computer processing exceeded the physical limits of existing data centres worldwide. ActewAGL chief executive John Mackay said assessing the viability of a gas-powered generator for Canberra had been under way for five years, but the economics did not stack up without a major new user.
Mr Mackay said Canberra residents also stood to gain, with surplus power going into the main grid.
The consortium wants the first centre commissioned by 2009.
"This has huge potential. If we can make it happen soon, before a major player enters the market then there could be the generation of employment and income," he said.
ActewAGL would need to upgrade one of its supply pipelines to either the Sydney-Moomba line or eastern gas line to feed the Hume generator.
Mr McEwen said federal and state governments and a range of data centres in Australia and around Asia needed more power than was available.
"For every unit of power used by the computers, you need another unit to cool them and so as demand for power goes up, likewise demand from the cooling structure rises," Mr McEwen said.
Recent power failures had threatened critical computer systems in central Melbourne and Sydney locations.
"The boards of these companies are well aware of the need to move their computer operations to more robust data centres.
"One of the big issues around the globe is the failure of power infrastructure to cope with demand.
"Even at a domestic level, when someone turns on an air-conditioner there is a problem," he said.
"We have a unique partnership with ActewAGL for a planned, on-site, gas-powered electrical generation."
He said 80 to 90 per cent of Australia's power came from coal-fired generators.
Using gas as a clean burning technique relative to coal was a vast leap forward for data centres.
Sourcing power offsite meant 10 to 15 per cent of power was lost during transmission, depending on atmospheric conditions. Power generation at the data centres overcame the transmission loss and led to a power gain.
Most data centres around the world had a power rating of 300 to 500 watts per square metre. Modern ones hastily constructed in the dotcom boom in 2001 were rated at 600 to 800 watts per square metre.
Offering 4500 watts per square metre would attract investment in the proposed new centres.
The locations of the Canberra technology hubs are under wraps until clients are signed up.
Mr McEwen said discussions were under way with educational institutions to enhance course materials for training staff.