Overview
- Premier Ben Carroll announced on Tuesday that all new data centres in Victoria must match their energy demand with new renewable generation and storage, may not use drinking water for cooling, and must keep at least 150 metres from homes and away from schools and childcare sites.
- The rules require developers to pay for energy network upgrades and contribute to local investment funds for TAFEs, parks and worker training so nearby communities receive direct benefits from projects.
- Existing operating sites and projects already approved or before the planning minister are exempt, a carve-out that covers NextDC’s Port Melbourne approval and limits immediate disruption to the current pipeline.
- Some requirements can be imposed quickly by regulation while others need longer rule‑making, and the government has not yet detailed enforcement mechanisms or penalties for non‑compliance.
- The move responds to rising public concern about siting, water use, noise and grid capacity in a state with about 50 data centres and projected data‑centre power demand that could quadruple by 2030, and it arrives as a Senate inquiry holds hearings in Melbourne.