Large concrete pillars are now pushing skyward along South Sea Islander Way — the unmistakeable early signs of the Sunshine Coast’s first dedicated AI data centre in the heart of Maroochydore, and what Sunshine Coast Council has called the region’s biggest-ever private commercial investment.
The $200 million facility, known as SC2, is being built by data centre operator NextDC at 10 South Sea Islander Way in the Maroochydore CBD. It is designed as a five-storey structure with a capacity of 6 megawatts, on a 3,710 square metre plot. The site sits alongside NextDC’s existing SC1 centre, which has been operational since 2021 and already serves as host to the Sunshine Coast International Broadband Network cable landing station.
Council has described SC2 as an “AI factory” — purpose-built infrastructure aimed at expanding digital capability across sectors including aerospace, geospatial intelligence and biomedical research. For locals watching the Maroochydore CBD rapidly evolve from a former golf course site into a full-scale urban centre, the development marks another striking chapter in the area’s transformation.
Water-wise by design
One of the most talked-about aspects of SC2 is its approach to cooling — a critical issue given how much water traditional AI data centres consume. According to an Environmental and Energy Study Institute article cited in reporting on the project, a large AI facility can use up to nearly 19 million litres of water per day, while even a medium-sized centre may consume the equivalent of what roughly 1,000 households use in a year.
SC2 will take a markedly different path. NextDC CEO Craig Scroggie has explained that the new centre will use closed-loop, liquid direct-to-chip cooling, where water is sealed within the system, circulates directly over computer chips to draw away heat, and is then recirculated rather than lost to evaporation. Any water top-ups required will draw from recycled sources rather than the region’s drinking water supply — a significant departure from conventional data centre practice.
NextDC’s SC1 centre has already earned recognition as one of the most water-efficient data facilities in the country, thanks to its use of rainwater-fed cooling towers and high-efficiency chillers. Scroggie has indicated that the AI workloads SC2 is designed to handle demand a more advanced approach still, and that the sealed system will result in minimal ongoing water consumption.
Jobs and opportunity
Beyond the physical infrastructure, SC2 is expected to generate lasting employment on the Sunshine Coast once operational. Scroggie has pointed to direct roles for engineers, technicians and operations staff, as well as broader knock-on opportunities for cloud providers, network operators, cybersecurity businesses, software firms and start-ups drawn to the region by the availability of world-class digital infrastructure.
NextDC has committed $200 million to expand its digital footprint in Queensland with SC2, and the CEO has said the facility will help local and national organisations make the most of AI and further strengthen the Sunshine Coast’s standing as a key hub for Australia’s digital economy.
A rapidly changing neighbourhood
The SC2 site is not the only thing reshaping this stretch of Maroochydore. The surrounding CBD precinct is in the midst of a broader transformation, with an $82.9 million state government funding commitment aimed at unlocking the development of more than 1,800 apartments in the eastern precinct of the Maroochydore City Centre, as part of the $142.7 million project to support ongoing CBD development.
That kind of residential growth — alongside commercial towers, hospitality venues and transport planning — means SC2 is being built into a neighbourhood that will look considerably different again by the time it opens its doors.For a region that has quietly been positioning itself as a serious player in digital connectivity — with international submarine cables already landing at Maroochydore, and Google using the SC1 facility to support the Tabua trans-Pacific cable landing expected in 2026 — the arrival of a dedicated AI data centre feels less like a surprise and more like the next logical step.
Published 21-April-2026
