The Cocos Keeling Islands in the Indian Ocean has the potential to be an important link in the Australian defensive arc, the Cocos Keeling Islands are located in the Indian Ocean south west of Christmas Island and closer to Indonesia than Australia.

The island is similar to Diego Garcia in many ways, that is the British territory in the Indian Ocean with a US military base on the atoll. On Cocos Keeling Island there is a single runway on the outer atoll with a shallow lagoon in the centre, similar to Diego Garcia. There are 27 islands making up the Cocos Keeling Island atoll with only two of the islands populated, the population is around 600 people, so it is a pretty small island.

The initial plan is to establish a radar array on the island, this will track missile launches and aircraft. Expressions of interest have been sought for an airborne electronic warfare/ISR forward operating base to be established on the island, the contractor then has to support the infrastructure for a year after building. The airbase is also expected to operate M-55A Peregrine EW, a modified Gulfstream G550 business jet. The M-55A Peregrine EW is an electronic warfare aircraft supporting air, naval and ground forces. Defence has stated the main base will be RAAF Base Edinburgh in South Australia with forward operating bases in Darwin, Townsville and the Cocos Keeling Islands.

The runway is to be widened to support the heavier P-8A Poseidon aircraft, a Boeing 737-800 airframe. The AP-3C Orion aircraft that operated previously provided maritime surveillance, the PC-3B entered service in 1968, the P-3C was introduced in 1978 with significant upgrades to AP-3C specifications from 2002 onwards. The AP-3C is being phased out of service with the final aircraft planned for decommissioning in 2023. With the P-8A Poseidon based at RAAF Base Edinburgh, the Cocos Keeling Islands will form the western forward operating base with Darwin and Townsville as the other bases, there is the potential and requirement to upgrade Cocos Keeling Islands for a greater role in the future.