Datacentres in Victoria to be banned in residential areas

Victoria's premier, Ben Carroll, will unveil a comprehensive sustainable datacentre action plan on Tuesday, instituting stringent regulations for datacentres in the state. The new rules ban datacentres within residential areas, near schools, childcare centres, and rural regions insufficient to support them, while mandating the installation of a 150-metre buffer zone between new developments and homes.

Datacentres must generate their own renewable energy and cover connection costs and network upgrades. They are also required to utilize recycled or non-drinking water for cooling processes or offset their usage. Additionally, new datacentres must contribute to the community through a "local investment guarantee," which could encompass job creation, Tafe institutions, and parks. The plan also mandates "fair community consultation," alongside existing noise limits, fire, and safety rules.

The government asserts that these rules are the "strongest" and "clearest" governing datacentres in the country, emphasizing that if implemented correctly, they can benefit the local community economically. Premier Carroll stated, "In Victoria, we set the rules – datacentres must power themselves, protect homes and pay their way."

The proposed rules come after the federal government initially aimed to mandate all new datacentres to be powered by renewable energy instead of coal and gas. However, this mandate was dropped due to opposition from Queensland and Northern Territory leaders.

The initiative follows growing community opposition, particularly in Labor-held seats such as Footscray in Melbourne's north-west, where NextDC has applied for a significant expansion. NextDC's Footscray datacentre, M3, would cover 10 hectares, consume 225 megawatts of power, and operate round the clock, with some residential homes within 15 meters of its boundary.

Labor MP for Lara, Ella George, expressed concerns about NextDC's land acquisition outside Geelong, which was previously designated for residential development. The proposed 350-hectare, 2.4GW datacentre in Plumpton has also faced opposition from federal Labor MPs Alice Jordan-Baird and Sam Rae.