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Victoria Lays Down the Law for Data Centres
The plan requires developers to use renewable energy, avoid drinking water and fund local upgrades as Victoria responds to community backlash.
On Tuesday, Premier Ben Carroll unveiled the Sustainable Data Centre Action Plan, introducing a 150-metre buffer between new data centres and homes while mandating renewable energy and non-drinking water usage.
Widespread community opposition in Melbourne's inner west prompted the policy, following fierce protests against diesel generator pollution, constant noise, and lack of consultation regarding developments near homes.
Developers must now source their own renewable energy, fund local infrastructure upgrades, and contribute to investment funds for TAFEs and parks to ensure communities share economic benefits.
CDC Data Centres chief executive Greg Boorer welcomed the regulatory clarity, while Data Centres Australia chief executive Belinda Dennett criticized the 150-metre buffer as potentially rendering suitable sites unviable.
These rules are not retrospective, meaning at least three proposed projects will breach the new buffer, while the Victorian Government plans to develop detailed siting guidance throughout 2027.