Perth-based energy company Pilot Energy is rapidly approaching a significant milestone, with its modular data centre project at Arrowsmith in Western Australia's Mid West region on schedule for commissioning in early 2026. This development promises to deliver near-term positive cash flow for the company.
Strategic Partnership and Infrastructure Utilisation
The newly named Dongara Data Centre project is being delivered through a strategic partnership with UAE-based Kala Data FZCO. Kala will install and operate the modular data centre, leveraging Pilot's existing gas-fired 4.4 MW generators at the Arrowsmith facility.
Importantly, the data centre will be managed by Pilot's current operating team. This approach allows the company to monetise its existing infrastructure without incurring material additional overheads, enhancing the project's financial viability.
Phased Rollout and Capacity Expansion
The project will see an initial 1-megawatt modular data centre unit installed in early March 2026. Capacity is then set to expand to 4 MW by mid-2026. Once operational, the facility is expected to be the first live data centre in the Mid West region and could rank among Western Australia's top ten data centres by power capacity.
Pilot Energy managing director Brad Lingo emphasised the project's significance, stating it represents an important step towards generating revenue and maximising the value of existing infrastructure at Arrowsmith.
Execution Progress and Future Scaling
Execution planning is already well advanced. Assembly of the first 1 MW data centre module and associated immersion thermal management systems has been completed in Shenzhen, China, with shipment to the WA Port of Kwinana pending.
At the Arrowsmith site, Pilot has completed assessments and identified an optimal location adjacent to existing control and operations infrastructure for the staged rollout of multiple modules. Minor civil works for the first module are set to commence next month, with electrical installation and module mobilisation slated for early March, targeting start-up by the end of that month.
Once connected, the data centre will link to international communications networks via a Starlink satellite connection. Subject to satisfactory operational and financial performance, Pilot and Kala intend to proceed with the planned expansion to 4 MW, which could potentially position Dongara as Western Australia's seventh-largest data centre facility by power capacity.
Long-Term Strategic Vision
Together, Pilot and Kala are actively assessing the potential to scale the data centre footprint to 30–35 MW across either Arrowsmith or the Three Springs Solar project. This emphasises the longer-term strategic value of the initiative, which could open the door to a materially larger data and energy platform over time.
Management noted the project is expected to support the transition of the Cliff Head Project into a carbon storage asset, aligning with broader environmental goals.
Addressing Regional Infrastructure Gaps
The Mid West currently hosts no live data centres, despite being served by fibre-optic infrastructure operated by Vocus Group. Pilot says this positions the Dongara facility to fill a regional infrastructure gap while leveraging proximity to established energy assets.
Data centres operate continuously to process, store, and manage digital data. They can range from small sites under 500 square metres to massive hyperscale centres over 100,000 square metres, with energy demands comparable to small cities. The Climate Council of Australia recently forecast that data centre energy demand will grow almost fivefold over the next decade.
Renewable Energy Integration
Pilot's plans to locate a data centre in sun-soaked Western Australia, paired with solar generation and large-scale batteries, present a logical solution. This co-location creates dedicated renewable energy hubs leading to reduced emissions, lower operating costs, and eased pressure on local power networks.
The approach also offers greater energy independence and aligns with global trends toward decentralised, clean energy systems.
With commissioning just weeks away and expansion pathways already mapped out, Pilot's Dongara Data Centre is shaping up as a notable example of near-term cash generation tied directly to a strategic shift toward longer-term clean energy and carbon storage ambitions.
