Noisy, bulky, thirsty: suburbs join war on data centres

In Melbourne's outer suburbs, residents worry about the potential impact of Australia's burgeoning data centres on the nation's democracy and sovereignty. While data centres have become a vital part of Australia's economy, contributing significantly to business investment and a hoped-for productivity revival, the Plumpton community is vehemently opposed to their construction.

These data centres, according to the Plumpton Action Group, are noisy, polluting, and pose a fire risk. They also consume vast amounts of energy and water, potentially leading to increased property values and a loss of green space.

The residents' concerns go beyond the immediate vicinity, extending to the broader implications of data centres' data collection and use. Samantha Demjancuk, a spokeswoman for the group, highlighted fears of private appropriation of human achievements and threats to democracy when testifying before a parliamentary committee. This has led to calls for a moratorium on data centre approvals until national standards are established.

The specific project causing this uproar is a proposed 2.4GW, 350-hectare AI hub, to be developed by Syncline Energy. The site's energy requirements would outstrip the generation capacity of Loy Yang A, Victoria's largest coal plant. However, the federal government's upcoming national standards, set to take effect early 2027, might not apply to this project if it receives final approval before the new rules come into force.

Currently, Syncline Energy plans for a 75% renewables energy mix, with the remainder sourced from the grid.

Managing director Philip Galloway acknowledged that community feedback significantly influenced their plans, including the abandonment of a gas condenser that would provide power during wind droughts. However, not all feedback was valid, according to Galloway. Nevertheless, the company has conceded that they failed to effectively communicate the project's potential benefits to the community, such as cheaper energy.

Federal Assistant Minister for Technology Andrew Charlton sees data centres as a potential asset for grid stability and a means to reduce household energy bills. However, opposition energy spokesman Dan Tehan warns that mandating data centres to source power from renewables could push investment overseas.