Victoria Bans Residential Data Centres Amid National Regulatory Push

The Government of Victoria has implemented a sustainable data centre action plan that bans the construction of these facilities in residential areas, near schools, and near childcare centres. Announced by Premier Ben Carroll, the regulations mandate a 150-metre buffer zone between new developments and homes. Operators must now source their own renewable energy to match demand, cover network upgrade costs, and use recycled or non-drinking water for cooling systems.

To ensure community benefit, the policy requires a local investment guarantee and the employment of Victorians for construction and long-term roles. These rules follow community opposition in Labor-held seats regarding proposed projects by NextDC in Footscray and Geelong, and a 2.4GW project by Syncline Energy in Plumpton. Alie Wastie, CEO of the City of Greater Geelong, described the move as a necessary re-set to provide common sense guardrails.

Similar tensions are appearing elsewhere in Australia. In Canberra, Chief Minister Andrew Barr rejected an ACT Greens proposal to co-locate data centres with public swimming pools to utilize waste heat, arguing such infrastructure is unsuitable for suburban aquatic sites. Meanwhile, local councils in Sydney testified before a Senate committee that tech companies are seizing prime land intended for housing. This occurs as Prime Minister Anthony Albanese seeks national standards to manage a forecasted A$225 billion investment surge in the sector over the next three years.