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Google is preparing to construct a large-scale AI data centre on Australia’s Christmas Island, a remote Indian Ocean territory increasingly viewed as a key defence and communications outpost, according to documents and local officials.

The project follows a three-year cloud contract between Google and Australia’s Department of Defence signed in July. Military experts say the facility could play a dual role — advancing Google’s cloud network while serving as a strategic hub for monitoring Chinese naval activity and enabling AI-assisted military operations.

Located 350 kilometers south of Indonesia, Christmas Island’s position makes it ideal for a secure “command and control” base. Bryan Clark, a former U.S. Navy strategist, said the data centre could enable AI-driven surveillance and communication even if satellite systems are jammed.

To power and connect the site, Google has applied to build a subsea cable linking Christmas Island to Darwin — a project handled by U.S. firm SubCom, which has previously installed cables for U.S. and U.K. military bases.

Local authorities say they are reviewing the plan’s social and environmental impacts. Christmas Island Shire President Steve Pereira said residents support the proposal if it delivers infrastructure, employment, and economic growth.

“The island is a strategic asset for defence,” Pereira said. “We just want to make sure any development benefits our community as well.”