Residents near huge data centre demand financial compensation
A Senate inquiry into artificial intelligence and data centres hears from residents and local councils about the impact of an influx of data centres in Melbourne's suburbs.
Residents living near a large data centre in Melbourne's west are demanding remediation efforts and financial compensation due to pollution and potential fire risks. The Victorian government introduced new regulations for data centre construction, which include 150-meter buffer zones and the use of renewable energy. However, these regulations would not apply to existing or planned data centres.
The tech giant NextDC's West Footscray data centre is located just 15 meters from homes, and an application to expand its size would not need to comply with the new rules if approved. A Senate inquiry into AI and data centers' impact on Australian communities is set to hold its final hearing on October 1. Advocacy group Citizens for Tottenham is calling for remediation and a voluntary home buyback for residents living within 500 meters of the data centres, offering compensation for loss of amenity, stamp duty, moving costs, and a $10,000 one-time payment.
Senate inquiry chair Sarah Hanson-Young supports residents' demands for compensation, arguing that the benefits should go to the community. The proposed AI hub in Plumpton, Melbourne's north-west, would be 75% powered by renewable energy, but critics argue that the buffer zone is insufficient to protect residents from pollution.
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