The hyperscale data centre specialist AirTrunk has confirmed the acquisition of a new site in north-west Melbourne for its second major campus in the city. Known as MEL2, the project is expected to involve over A$5 billion in direct investment. This move significantly increases the company’s footprint in Victoria, bringing its total planned investment in the state to more than A$7 billion.

Once the new facility is fully operational, it will provide over 354MW of capacity. This brings the total deployable power across AirTrunk’s two Melbourne sites to more than 630MW. Nationally, the company now oversees five campuses with a combined capacity of 1.2GW, providing infrastructure for major artificial intelligence and cloud service providers.

“Australia has set bold ambitions to become a global AI hub, and demand for AI‑ready infrastructure continues to grow. MEL2 is part of our response. Working closely with Invest Victoria, we’re expanding in Melbourne to support Australia’s AI future while creating new opportunities for local business and communities,” said Robin Khuda, Founder and CEO of AirTrunk. He added that the firm’s financial standing and regional history “help give global AI customers confidence in reliable, on‑time deployment in Australia.”

The project is set to be a significant employer for the region. Construction is expected to create over 4,000 jobs across various phases, with 200 permanent roles established once the site opens. Furthermore, the company estimates that more than 1,000 full-time positions will be created within the local supply chain to support ongoing operations.

Victorian Premier, the Hon. Jacinta Allan, welcomed the news, stating: “Victoria is leading Australia’s digital transformation, and investments like this will strengthen our state’s position as a hub for cloud and AI innovation, create thousands of jobs, and deliver sustainable infrastructure that supports our growing technology ecosystem.”

This expansion aligns with the National AI Plan released by the federal government in late 2025. The industry currently generates roughly A$12.6 billion in gross value per terawatt-hour of energy used. Recent data also shows the sector is becoming increasingly efficient, using less than 0.1% of the nation’s water. AirTrunk has previously introduced advanced technologies such as direct-to-chip liquid cooling to manage the high-density workloads required for modern AI applications.