Australian state bans data centres from residential areas

Victoria, Australia’s most populous state, has prohibited the establishment of data centers within residential zones, instituting a mandatory 150-meter buffer zone to maintain distance from homes. The regulation, announced on Tuesday by Premier Ben Carroll, aims to address community opposition to the construction of these facilities.

In response to the expanding demand for data centers, the government will require these facilities to source their energy independently from renewable resources and to allocate for necessary network upgrades. Furthermore, data centers will be compelled to utilize recycled or non-drinking water for cooling purposes, ensuring minimal strain on local water resources.

This move comes as part of a broader strategy to establish guidelines for data centers, balancing economic growth with local community concerns. Prime Minister Anthony Albanese has been advocating for national standards to govern the expansion of data centers while concurrently addressing the apprehensions of residents. According to Westpac Banking Corp., the increase in investments in data centers could potentially reach A$225 billion ($160 billion), with a significant portion occurring within the next three years.