Australia’s shale gas operator Beetaloo Energy has signed a nonbinding memorandum of understanding (MOU) with Halliburton to participate in creating a gas-powered data center campus in Australia’s Northern Territory, known as Beetaloo Digital, that would connect to customers in Asia by fiber-optic cable.
Gas would be transmitted by pipeline more than 320 miles from the Beetaloo Basin to Weddell, an unpopulated rural area 37 miles southeast of Darwin that has been identified as a potential site for data centers powered by gas-fired modular generation systems operating independently of the grid.
The Northern Territory government granted Beetaloo Energy Australia Ltd. exclusivity in July over a 185-hectare site at Weddell to conduct feasibility studies over the next year, according to the government’s 2026–2027 budget announcement.
Connecting AI Data Regionally
The site could be connected to Darwin's high-speed international subsea internet cable network, enabling nearby data centers to transmit AI-related data from Australia to Asia, with a focus on Singapore, Hong Kong, and Southeast Asia, according to The Australian Financial Review.
Under the MOU, Halliburton will provide strategic technical expertise and services in upstream field development, integrated drilling services, and project execution to assess and develop the gas resource supplying Beetaloo Digital, a wholly owned subsidiary of Beetaloo Energy, according to a 30 July news release.
"Following the Northern Territory government's decision to grant us exclusivity over the Weddell site, we are committed to building a world-class consortium capable of delivering this opportunity," Beetaloo Energy CEO Alex Underwood said in the company’s release.
"Hyperscale data centers and AI facilities operate continuously, creating durable and predictable demand,” Underwood continued. “That demand profile supports long-term field development, accelerates upstream investment, and positions Beetaloo Digital as a potential large-scale, sustained cash flow generator for Beetaloo Energy.”
Beetaloo’s First Gas Production
In its recent 2026–2027 budget announcement, the Northern Territory government noted that first gas from the Beetaloo Basin is expected to flow in late 2026, with Tamboran Resources’ Shenandoah South Project targeting Q3 and Beetaloo’s Carpentaria Project targeting Q4.
The Carpentaria gas processing plant would eventually become the point of origin for gas supplied to Weddell if Beetaloo Digital proceeds. First production from the Carpentaria Project 5-Tcf pilot development will supply the territorial government under a 10-year binding gas sales agreement, Beetaloo noted in its 2026 Annual General Meeting presentation.
Santos and Japan’s Inpex, which recently farmed into a project with Daly Waters Energy, are also advancing major drilling, stimulation, and gas supply projects in the Beetaloo Basin, although neither is targeting production before the early 2030s.
The Northern Territory government’s bid round for a further 4,000 km2 of highly prospective land surrounding premium shale gas assets held by Inpex and Tamboran Resources closed on 31 July, according to the budget announcement.
Beetaloo Energy aims to gather a coalition of specialist partners across pipeline, power generation, and data center development under the Beetaloo Digital umbrella, while taking the role of upstream gas supplier, the company said.
The proposed project remains subject to concept studies, consortium formation, financing, and applicable government and regulatory approvals.