Key facts
- Datacentres will be banned in residential areas in Victoria.
- New datacentres must use renewable energy and contribute to the community.
- A 150-meter buffer zone is required between new datacentres and homes.
- Datacentres must source their own renewable energy and pay for connection costs.
- New datacentres must provide community benefits like jobs, TAFEs, and parks.
- The government claims the rules are the strongest and clearest in the country.
Victoria has introduced new regulations that will ban datacentres from residential areas and mandate the use of renewable energy and community contributions. Premier Ben Carroll announced the sustainable datacentre action plan, approved by cabinet on Monday, which aims to be the most stringent in Australia.
The new rules prohibit datacentres near schools and childcare centers, and in rural areas unable to support them, while establishing a 150-meter buffer zone from existing homes. Datacentre operators will be required to generate their own renewable energy, cover connection costs, and fund network upgrades. They must also utilize recycled or non-drinking water for cooling or offset their water usage.
Furthermore, new datacentres will be obligated to contribute to local communities through a "local investment guarantee," potentially including job creation, support for TAFE institutions, and park development. Employment and training for local Victorians during construction and long-term operations will also be mandated. The plan also emphasizes fair community consultation alongside existing noise, fire, and safety regulations.
These measures come amid growing community opposition to datacentre developments, particularly in Labor-held seats leading up to the November election. Concerns have been raised about the environmental impact, including power consumption and water usage, as well as proximity to residential areas. Companies like NextDC and Syncline Energy have faced scrutiny over their expansion plans and proposed new facilities.