Council Calls For Data Centre Freeze

Wyndham City Council is calling for a halt to approvals of new major data centres across Victoria until stronger planning regulations are introduced.

At its 27 October meeting, Council considered a report outlining concerns about the rapid growth of data centres in Wyndham, including electricity and water consumption, environmental impacts and limited community consultation.

Council’s position includes advocating for a temporary freeze on approvals for new major data centres and expansions of existing facilities until appropriate planning controls and mandatory standards are established.

The report also raises concerns about the Victorian Government’s increasing control over planning decisions for major developments.

Growing Number Of Data Centres

According to the Council report, nine data centres worth between $2.7 billion and $3.5 billion have been approved in Wyndham since 2020, covering more than 76 hectares of land.

A further 9.8 hectares is awaiting approval.

The report estimates approved facilities will generate approximately 288 ongoing jobs, increasing to around 339 if additional developments proceed.

Council also highlights concerns about the amount of electricity and water these facilities require, alongside their potential impact on surrounding communities.

The report acknowledges that data centres support digital services and economic investment but questions whether they provide sufficient long-term local employment.

Council Seeks Greater Planning Powers

Council will write to the Victorian Government requesting a parliamentary inquiry into data centres, greater community consultation and stronger environmental and planning requirements.

It is also seeking a system requiring developers to contribute funding towards local infrastructure and community benefits.

The report states that current State Government approval processes can limit Council’s influence over major developments and restrict opportunities for residents to have their say.

Council is also seeking greater transparency in how applications are assessed, including consideration of electricity demand, water consumption and the cumulative impacts of multiple facilities.

Future Decisions And State Regulations

The report proposes that major data centre applications be referred for consideration of whether a detailed environmental assessment is required.

It also outlines changes intended to ensure future data centre planning decisions within Council’s authority are considered by elected councillors rather than determined by council officers.

The Victorian Government has announced new planning requirements for data centres, including restrictions on locations near residential areas.

However, Council’s report notes that these changes will not apply to existing facilities or applications already seeking approval.

Any statewide pause on approvals would require action beyond Council’s existing planning powers.