'Irrelevant': Labor's data centre clampdown knocked

New data centres in Victoria would need to generate their own renewable energy if the proposed laws, inspired by national standards, are implemented upon Premier Ben Carroll's re-election. The proposed regulations also aim to prevent data centres from utilizing the state's drinking water and restrict their construction in residential areas, near schools or childcare centers.

These rules, however, would not be applicable to existing data centres or those undergoing approval assessments, leading to opposition claims that the proposed legislation is irrelevant. Community concern over the impact of power-hungry data centres on the electricity grid and environment has been significant. Victoria already hosts over 50 functioning data centres, with the government welcoming further development as a source of jobs and investment.

Industry representatives argue that the proposed limitations already exist under the state's environmental and planning framework, while the digital economy minister emphasizes the crucial role data centres play in supporting essential services. The Federal Government is currently developing mandatory national standards for data centres, which includes requiring new renewables and firming to offset energy demand.