Pilot set to flick the switch on WA data centre cash flow
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Rowena Duckworth
Perth-based Pilot Energy is fast approaching near-term cash flow after confirming its modular data center project at Arrowsmith in Western Australia’s Central West is on track to be commissioned in early 2026.
The newly named Dongara Data Center project will see the first 1 megawatt (MW) modular data center unit installed at Pilot’s Arrowsmith site in early March 2026, with capacity increasing to 4 MW by mid-2026.
Once operational, the facility is expected to be the first operational data center in the Central West region and be among WA’s top 10 live data centers based on power capacity.
The project is being delivered through a strategic partnership with UAE-based Kala Data FZCO, which will build and operate the modular data center using Pilot’s existing gas-powered 4.4 MW generators.
‘The Dongara Data Center project represents a significant step towards generating revenue.’
Pilot Energy general manager Brad Lingo
Importantly, the data center will be managed by Pilot’s existing operating team, allowing the company to monetize existing infrastructure without material overhead.
Management said the project is expected to generate positive cash flow in the short term and will support the transition of the Cliff Head Project to a carbon storage asset.
Pilot Energy general manager Brad Lingo said: “The Dongara Data Center project represents a significant step towards generating revenue and maximizing the value of our existing infrastructure at Arrowsmith. Installation of the first 1 MW modular data center unit in early 2026 and expansion to 4 MW by mid-2026 positions Pilot to deliver one of Western Australia’s first live data centers in the Central West and potentially a top 10 site in the State for power capacity..”
Together, Pilot and Kala are actively evaluating the potential to scale the data center footprint to 30-35 MW in an Arrowsmith or Three Springs Solar project, highlighting the longer-term strategic value of this initiative, which could open the door to a materially larger data and energy platform over time.
Implementation planning is already well advanced. Assembly of the first 1MW data center module and associated immersion thermal management systems has been completed in Shenzhen, China, and is expected to be shipped to WA’s Port of Kwinana.
The pilot completed site evaluations at Arrowsmith and determined the optimal location adjacent to existing control and operations infrastructure for the phased rollout of multiple modules.
Minor construction works of the first module will begin next month; Electrical installation and mobilization of the module will be done at the beginning of March and it is aimed to be commissioned at the end of the same month.
Once connected, the data center will be connected to international communications networks via a Starlink satellite link.
Subject to satisfactory operational and financial performance, Pilot and Kala intend to proceed with the planned expansion of up to 4MW, which will potentially make Dongara the seventh largest data center facility in Western Australia by power capacity.
Data centers operate all day, every day to process, store and manage digital data. It includes equipment such as servers, routers, switches, firewalls and storage systems. They can range in size from small spaces under 500 square meters to huge “hyperscale” centers over 100,000 square meters that use as much electricity as a small city! Just last November, the Australian Climate Council predicted that data center energy demand would increase almost fivefold over the next decade.
The Midwest does not currently host live data centers, although they are served by fiber optic infrastructure operated by Vocus Group. Pilot says this positions Dongara to fill a regional infrastructure gap while capitalizing on its proximity to established energy assets.
Pilots’ plans to build a data center paired with solar power generation and large-scale batteries in sunny Western Australia are a logical solution.
Co-location will create dedicated renewable energy hubs that will lead to reduced emissions, lower operating costs and relieve pressure on local energy networks. This approach also offers greater energy independence and aligns with global trends towards decentralized, clean energy systems.
Pilot’s Dongara Data Center is shaping up to be a rare example of short-term cash generation directly linked to a strategic shift to long-term clean energy and carbon storage targets, with only a few weeks left until commissioning and expansion paths already established.
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