Pilot set to flick the switch on WA data centre cash flow

Perth-based Pilot Energy is rapidly closing in on near-term cash flow after confirming that its modular data centre project at Arrowsmith, in Western Australia’s Mid West, is on track for commissioning in early 2026.

The newly named Dongara Data Centre project will see an initial 1-megawatt (MW) modular data centre unit installed at Pilot’s Arrowsmith facility in early March 2026, with capacity set to expand to 4MW by mid-2026.

Once live, the facility is expected to be the first operational data centre in the Mid West region and will rank among WA’s top 10 live data centres by power capacity.

The project is being delivered through a strategic partnership with UAE-based Kala Data FZCO, which will install and operate the modular data centre using Pilot’s existing gas-fired 4.4MW generators.

Importantly, the data centre will be managed by Pilot’s current operating team, allowing the company to monetise existing infrastructure without material additional overheads.

Management said the project is expected to deliver near-term positive cash flow and will support the transition of the Cliff Head Project into a carbon storage asset.

The Dongara Data Centre project represents an important step towards generating revenue and maximising the value of our existing infrastructure at Arrowsmith. The installation of an initial 1MW modular data centre unit in early 2026, with expansion to 4 MW by mid-2026, positions Pilot to deliver one of Western Australia’s first live data centres in the Mid West and potentially a top 10 facility in the State by power capacity.

Together, Pilot and Kala are actively assessing the potential to scale the data centre footprint to 30–35MW across either Arrowsmith or the Three Springs Solar project, emphasising the longer-term strategic value of this initiative, which could then open the door to a materially larger data and energy platform over time.

Execution planning is already well advanced. Assembly of the first 1MW 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 Arrowsmith, Pilot has completed site 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 kick off next month, with electrical installation and module mobilisation slated for early March, ahead of a targeted start-up by the end of that same 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 4MW, which would potentially position Dongara as Western Australia’s seventh-largest data centre facility by power capacity.

Data centres run all day, every day, to process, store, and manage digital data. They include equipment like servers, routers, switches, firewalls, and storage systems. They can range in size from small sites under 500 square metres to massive “hyperscale” centres more than 100,000 square metres, which use as much electricity as a small city! Just last November, the Climate Council of Australia forecast that data centre energy demand will grow almost five times over the next decade.

The Mid-West currently hosts no live data centres, despite being served by fibre-optic infrastructure operated by Vocus Group. Pilot says this positions Dongara to fill a regional infrastructure gap while leveraging its proximity to established energy assets.

Pilots’ plans to locate a data centre in sun-soaked Western Australia, paired with solar generation and large-scale batteries, are a logical solution.

The co-location creates dedicated renewable energy hubs leading to reduced emissions, lower operating costs and will ease 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 rare example of near-term cash generation tied directly to a strategic shift to longer-term clean energy and carbon storage ambitions.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au