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Latrobe City welcomes proposed $10B Morwell data centre boosting economy, jobs, and industry

Latrobe City Council welcomes Keppel’s proposed $10 billion Morwell data centre, Australia’s largest, leveraging existing energy infrastructure to create jobs, support workforce transition, and drive long-term economic and industrial growth.

By news@gippsland - 19th January 2026 - Back to News

Latrobe City Council welcomes the recent announcement of the proposed $10 billion data centre for Morwell. If delivered, the proposed data centre would be the largest of its kind in Australia and will unlock long-term opportunities for the local economy. Global asset manager and operator, Keppel, has secured a lease of industrial land in Morwell from Australian energy and infrastructure landowner, Lightwood Group.

The 123-hectare Morwell site, near Hazelwood Power Station, offers power grid access and water, supporting workforce transition and industrial diversification

Powering economic transition

The selected site is 123-hectares and is located near the former Hazelwood Power Station. With the previous infrastructure in place, the site is appropriately zoned and was identified as a unique location due to its direct access to the power grid and existing non-drinkable water source which is required for the operation of the data centre.

With the closure of coal-fired power stations and associated industries announced for 2028 and 2035, investment of this nature is critical to providing certainty for the local workforce and creating new pathways for skilled workers. Projects that leverage existing energy infrastructure while supporting new industries are essential to our economic and environmental diversification.

As state and federal governments progress Net Zero commitments, Latrobe City is well positioned to remain the epicentre of the energy economy - supporting renewable generation, stable and continuous energy, hydrogen and emerging industries that rely on secure, large-scale power supply.

Latrobe powers forward

Latrobe City Council Mayor, Councillor Sharon Gibson, welcomes investment like this in Latrobe subject to meeting appropriate planning requirements and developing a social licence for the proposal. "Latrobe City has powered Victoria for generations and is now uniquely placed to support the next era of industry, including data, digital and clean-energy-enabled infrastructure."

"Our existing transmission assets, industrial land, water access, freight connectivity and incredible skillset make the region a nationally significant location for large-scale, energy-reliant investment; we're here and we're ready to grow," said Cr Gibson.

Keppel have advised that they would like to brief Council on the proposal in the future and will deliver further information in relation to the significant investment and employment opportunities that this proposal would deliver to the region. Council looks forward to receiving a planning application for the proposal that Keppel are also preparing and they will be required to implement controls to address any impacts on adjoining landowners.

Pictures from Parliament of Victoria website.

Source: www.gippsland.com

Published by: news@gippsland.com

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• Labor government invests $750,000 to support young Gippslanders into education, training and employment opportunities
  The Victorian Labor government is investing $750,000 in Ladder Step Up Latrobe Valley, supporting 120 young people facing barriers to education, training and employment through 2028.
• Surf Parade shared path moves forward as Bass Coast Shire Council investigates two-way road and carparking design in Inverloch
  Bass Coast Shire Council will soon begin construction of the Surf Parade Shared Path in Inverloch, with completion expected by Christmas, while investigating costs and community support for two-way road and carparking.
• Gippsland Water upgrades Buckley's Hill basin to boost industrial reliability and strengthen emergency water supply resilience
  Gippsland Water has upgraded Morwell Buckley's Hill raw water basin, improving water reliability for industry, supporting the energy sector, and providing an emergency backup water source for residential customers during supply disruptions.
• Dental experts warn Labor plan could worsen lengthy public dental waits for vulnerable Gippslanders across regional Victoria
  Dental experts warn Labor's proposed public dental expansion could worsen Gippsland wait times, with vulnerable residents already facing waits exceeding two years in some areas.