In short:
Victoria has proposed tougher restrictions on new data centres, including rules covering their proximity to homes, power demand and water use. Existing facilities and applications already under assessment would not be subject to the changes.
Proposed Regulations Come With A Catch
Victoria will impose new restrictions on data centres near homes and introduce tougher power and water requirements, but existing centres and applications already under assessment will escape the new rules.
The Carroll Government released its Sustainable Data Centre Action Plan on 22 September, proposing a 150-metre buffer between new data centre buildings and homes and prohibiting the facilities from residential zones.
New data centres would also be required to match their electricity demand with new renewable generation and storage, pay connection and network upgrade costs and use recycled or non-drinking water for cooling.
But the restrictions will not be retrospective.
Victoria already has more than 50 operating data centres, while additional developments are progressing through the planning system.
Applications already under assessment will not be subject to the new rules, meaning some facilities yet to be built could proceed under existing requirements.
(Data centre in Tottenham.)
Regional Backlash Against Data Centres Is Rife
The distinction comes as data centres face growing scrutiny across Melbourne’s west.
Data centres are already operating in areas including Truganina, while residents in West Footscray have raised concerns over the expansion of an existing facility close to homes.
In Spotswood, residents have also raised concerns about a proposed data centre on Simcock Avenue, including its proximity to residential areas.
Under the plan, future developments would also be kept away from schools and childcare centres, with restrictions proposed for rural areas unable to support the infrastructure.
Developers would need traffic management plans covering construction and ongoing operations.
Where recycled or non-drinking water cannot immediately be used for cooling, operators would need to offset drinking water use and contribute towards necessary infrastructure upgrades.
Local Investment Proposed As Clause
Future developments would also be subject to a Local Investment Guarantee, with potential benefits for host communities including local jobs, training and investment in community infrastructure.
However, parts of the new regime are still to be developed, including further statewide planning guidance and detailed implementation requirements.
Premier Ben Carroll said data centres would be expected to operate under tighter conditions.
“In Victoria, we set the rules – data centres must power themselves, protect homes and pay their way.”
“If we get that right, we can all share in their economic benefits, especially the local community.”
The government says Victoria’s data centre sector delivered $5.8 billion in capital expenditure last year.
