SYDNEY, Australia: Google's decision to build a data centre on one of Australia's most isolated territories is stirring a broader conversation about the future of energy on Christmas Island, a remote outpost in the Indian Ocean where power has long depended on imported diesel.

The tech giant confirmed that it will establish a connectivity-focused data hub on the island, located about 350 km (220 miles) south of Indonesia, and will construct a new subsea cable system linking Christmas Island to the Maldives and Oman. The system will include two additional data hubs designed to "deepen the resilience of internet infrastructure in the Indian Ocean Region."

Initial worries that the island did not have enough electricity to support both residents and the new Google facility appear to have eased. Nicholas Gan, chief executive of Phosphate Resources, the island's largest employer and operator of its diesel-powered generator, said current supply levels were sufficient.

"The power grid can supply both Google's requirements and our requirements comfortably," Gan said.

Phosphate Resources, which imports diesel to run the generator that powers the mine and supports Australian defence force operations on the island, employs about half of Christmas Island's 1,600 residents. Gan noted, however, that capacity could tighten if the island's asylum-seeker detention centre or long-closed resort were to reopen. Google's project, he added, strengthens the argument for shifting to renewable energy, which would be cheaper than relying on diesel shipments.

Australia's infrastructure department is working with Google to ensure the new hub does not disrupt power availability for residents or local businesses.

Two additional planned Google subsea cables running east from Christmas Island will land near major Australian military bases, Reuters previously reported. Analysts say a data facility on the island could enable AI-powered drones to monitor Chinese submarine movements.

Google said the planned data hub will be smaller than many of its global centres and will share its digital infrastructure with local users. "The power required for a connectivity hub can still be a lot for some smaller locations, and where it is, Google is exploring using its power demand to accelerate local investment in sustainable energy generation," the company said.

Gan, who also sits on the island's economic future working group, said the project will deliver a much-needed economic boost to a community 1,600 km from mainland Australia and nearing "the last era for mining."

Christmas Island has weathered repeated economic cycles. A proposed Australia–Russia commercial spaceport, more than two decades ago, never opened due to Indonesian concerns. A casino that debuted in 1993 drew wealthy travelers from Jakarta before closing five years later during the Asian financial crisis. For two decades, a large detention centre for asylum seekers dominated the island until shifts in immigration policy left it mostly empty in 2023.