DUG signs option to lease land in Geraldton, progressing plans for carbon-free HPC campus.

ASX release 9 July 2021:

Highlights: 

  • DUG plans to build the world’s first carbon-free HPC campus, powered by renewables. 
  • DUG has signed an option to lease 44.5 hectares of land in Geraldton, Western Australia.
  • Option provides a 24-month term to execute the lease.
  • Lease would have an initial term of 15 years, and allow for two five-year extensions. 
  • Lease would permit construction of a HPC campus, associated infrastructure, and energy production from solar, wind and hydrogen.
  • The planned project includes opportunities and training for the Southern Yamatji People.

 

DUG Technology Ltd (ASX:DUG) (“DUG”) is pleased to announce the signing of an option (the “Option”) to lease (the “Lease”) from the Western Australian Land Authority (trading as DevelopmentWA) for approximately 44.5 hectares of land in Geraldton, Western Australia, progressing plans to build the world’s first, carbon-free, high-performance computing (HPC) campus.

The Option gives DUG a 24-month window to execute the Lease, which would have an initial term of 15 years, and allow for two five-year extensions. Subject to all required approvals the Lease would permit construction of a data centre campus with associated infrastructure, and energy production from solar, wind and hydrogen.  The parties have agreed that no Option fee shall be payable during the first 6 months of the Option term, however after this time DUG will pay an Option fee of $8,900 per annum (plus GST), on a pro rata basis during the balance of the Option term.

The Lease would realise the next stage for DUG’s renewables-powered campus, (refer to ASX announcement 25 May 2021) with plans including an initial computer room (Data Hall 1) capacity in excess of 200 petaflops. Subject to approvals, construction is slated to begin in the third quarter of 2021 with Data Hall 1 due to be commissioned in the first half of 2022.

Geraldton is a premium location for green energy, with an ideal climate for both wind and solar.  DUG’s award-winning and patented immersion cooling system (refer to ASX announcement 24 May 2021) would be utilised to make the new campus arguably the most energy efficient in the world, with an onsite hydrogen battery system also being investigated as part of the project.

The proposed development has the full support of the Yamatji Southern Regional Corporation Ltd Board. The land, which is known as Narngulu, is expected to pass to the Yamatji Nation Trust later this year as part of the Yamatji Nation Indigenous Land Use Agreement. The planned project includes opportunities and training for the Southern Yamatji People while protecting their cultural heritage.

To read more about the planned Geraldton carbon-free HPC campus click here.

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