Victoria unveils data centre strategy with renewables requirements

Premier Ben Carroll has unveiled a new data centre strategy in Victoria that mandates new data centres to generate their own renewable energy and maintain a 150-metre buffer from residential areas. The policy aims to address community concerns and prevent the industry from encroaching on neighborhoods. The government also plans to ban data centres from using drinking water, requiring them to rely on recycled or non-drinking water instead.

Although the state uses less than 1% of its drinking water for cooling, the policy aims to have zero reliance on it.

The announcement comes amid rising opposition to data centres, including from some Labor MPs and candidates. A Senate inquiry into AI and data centres is scheduled to hold hearings in Melbourne to address community concerns. Data Centre Australia reports that Victoria currently has 50 data centres, with energy consumption set to quadruple by 2030 as the state transitions away from coal-fired plants to renewable energy.

Premier Ben Carroll emphasizes that the policy ensures Victorians can share in the economic benefits of data centres, such as job creation and investment. The government argues that data centres support essential services like banking, healthcare, transport, and emergency services. However, the rules are expected to take time to fully implement, and it remains unclear how the state will enforce them.

Fast-tracking planning applications for data centres, the state government aims to facilitate growth while addressing community concerns. The proposed rules will also require data centres to pay towards a local investment fund to build TAFEs and parks, as well as undergo proper training of Victorian workers. The state government remains committed to working on planning rules for data centres, including fair community consultation.