Datacentres in Victoria to be banned in residential areas
News Source
β’Mon, 21 Sep 2026 19:00:23 GMT
π° What Happened
Victoria will ban new datacentres in residential areas, near schools and near childcare centres. The state government also wants a 150-metre gap between any new datacentre and people's homes. The plan was approved by cabinet on Monday and announced on Tuesday.
Under the new rules, datacentres must find their own renewable energy. They must also pay for their own grid connection and any network upgrades they need. Cooling must use recycled or non-drinking water, or the company must pay to offset what it uses.
Companies will also have to give something back to the community. This 'local investment guarantee' could mean jobs, TAFE training or parks. They must hire Victorians during construction and train locals for long-term jobs once the site is running.
π The Backstory
Datacentres are huge buildings full of computers. They store data and run AI tools and websites for millions of people. They need enormous amounts of electricity and water, and they run all day and night.
Victoria once wanted to be the datacentre capital of Australia. NextDC bought 169 hectares near Geelong that had been set aside for new homes. It also wants to expand its Footscray site to 10 hectares, and some homes sit within 15 metres of that site's fence.
Local anger has grown before the November state election, including in Labor-held seats. The Greens held a 'stop AI data centres' day of action in Footscray. Last year the federal government tried to force all new datacentres onto renewable power, but it backed down after Queensland and the Northern Territory objected.
π― Why It Matters
These rules could set the standard for other states. They decide how much power and water AI growth is allowed to take, and whether nearby residents get a real say.
Victoria will ban new datacentres in residential areas, near schools and near childcare centres. The state government also wants a 150-metre gap between any new datacentre and people's homes. The plan was approved by cabinet on Monday and announced on Tuesday.
Under the new rules, datacentres must find their own renewable energy. They must also pay for their own grid connection and any network upgrades they need. Cooling must use recycled or non-drinking water, or the company must pay to offset what it uses.
Companies will also have to give something back to the community. This 'local investment guarantee' could mean jobs, TAFE training or parks. They must hire Victorians during construction and train locals for long-term jobs once the site is running.
Datacentres are huge buildings full of computers. They store data and run AI tools and websites for millions of people. They need enormous amounts of electricity and water, and they run all day and night.
Victoria once wanted to be the datacentre capital of Australia. NextDC bought 169 hectares near Geelong that had been set aside for new homes. It also wants to expand its Footscray site to 10 hectares, and some homes sit within 15 metres of that site's fence.
Local anger has grown before the November state election, including in Labor-held seats. The Greens held a 'stop AI data centres' day of action in Footscray. Last year the federal government tried to force all new datacentres onto renewable power, but it backed down after Queensland and the Northern Territory objected.
These rules could set the standard for other states. They decide how much power and water AI growth is allowed to take, and whether nearby residents get a real say.