Australian state bans data centres from residential areas

The Australian state of Victoria has taken decisive action to ban data centres from residential areas, introducing a mandatory 150-metre buffer between these facilities and homes. This move is part of a broader set of regulations aimed at addressing the growing concerns and opposition from local communities regarding the environmental impact of these large-scale operations.

According to the center-left Labor premier Ben Carroll, data centres are crucial to the state's economy, but they must take measures to ensure they do not significantly strain local water and electricity resources. To achieve this, data centres will be required to match any additional energy demand with new generation capacity, and they will have to cover the costs associated with upgrading the network infrastructure.

Furthermore, these facilities will not be permitted to use drinking water for cooling purposes; instead, they will be mandated to employ recycled or non-drinking water alternatives. The new rules also stipulate that data centres must be located at least 150 metres away from any residential property to mitigate potential disturbances to nearby residents.

Prime Minister Anthony Albanese has been actively advocating for national standards for data centres, seeking to strike a balance between capitalizing on the booming demand for these facilities and addressing the legitimate concerns of local communities. As a result, the estimated spending on data centres in Victoria could reach A$225 billion ($160 billion) over the next three years, with the majority of the investment taking place in the coming years.