Dominic Jainy is a leading authority in data center infrastructure and technology real estate, specializing in the revitalization of industrial sites into high-performance computing hubs. With years of experience overseeing massive cloud expansions, he provides a unique perspective on Sharon AI’s recent AU$50 million acquisition of the former Ettamogah paper mill. Today, we discuss the strategic shift toward regional New South Wales, the deployment of 64,000 Nvidia GPUs, and the technical hurdles of bringing 212MW of capacity to an underutilized brownfield site.
The former paper mill in Ettamogah is transitioning into a high-tech center for AI cloud computing. What makes this specific brownfield site such a strategic asset for Sharon AI’s expansion in the Australian market?
This AU$50 million acquisition is a masterclass in repurposing legacy infrastructure for the modern AI era. The site, which was originally built in the 1980s, offers a robust power and logistics footprint that would be incredibly time-consuming and expensive to develop from scratch in a greenfield project. By revitalizing an underutilized site that Visy previously utilized for logistics, Sharon AI effectively bypasses many of the initial construction hurdles. This move places them strategically in the southern New South Wales corridor, bridging the gap between their established operations in Sydney and Melbourne.
Local representatives have stressed the need to “get the rules right” to protect the community as these facilities scale. How do you address these regulatory concerns while transforming a historic industrial landmark?
Balancing high-tech growth with community protection is essential when transitioning a historic site like the former Norske Skog mill. The concerns voiced by local MP Justin Clancy highlight the need for transparent integration into the local power grid and environment to ensure long-term sustainability. Since Visy will remain on-site as a tenant for warehouse and logistics space, the transition functions more as a strategic collaboration rather than a total industrial displacement. This hybrid model ensures that the 212MW capacity expansion enhances the region’s economic standing while respecting the expectations of the Ettamogah community.
Sharon AI plans to deploy 64,000 Nvidia GPUs by mid-2027. What are the primary technical and operational challenges of implementing this level of computing power in a regional location?
Deploying 64,000 Nvidia GPUs by mid-2027 is an enormous technical feat that requires meticulous planning regarding heat management and consistent energy uptime. Scaling to 212MW of capacity means the facility must be prepared for the most demanding generative AI workloads currently existing in the global market. Moving beyond their current partnerships with Equinix and CDC, this site represents Sharon AI’s transition toward self-managed, massive-scale infrastructure. It is a bold statement that positions regional New South Wales as a primary contender in the global cloud market rather than just a secondary capacity user.
What is your forecast for the Australian regional data center market?
I predict a significant surge in regional investments as major tech firms move away from saturated metropolitan zones to tap into the industrial power capacity of locations like Albury. By 2028, these regional hubs will likely become the backbone of Australia’s AI capabilities, offering a more sustainable and cost-effective alternative to traditional urban data centers. The success of the Ettamogah project will serve as a definitive blueprint for how legacy mills and factories across the country can be reborn as digital infrastructure leaders. This shift will ultimately provide regional communities with a new identity as essential players in the global technology race.