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Victorian councils call for a halt to new data centres

The peak body for all 79 Victorian councils wants no new data centre approvals until a full planning and environmental framework is in place.

3 min read
A data centre under construction beside a new housing estate on the edge of a Victorian suburb
Digitally illustrated image.

TLDR

The Municipal Association of Victoria has asked the state to stop approving new or expanded data centres until a full planning and environmental framework exists. The call puts data centres on the agenda weeks before the November state election.

KEY TAKEAWAYS

01All 79 Victorian councils, through their peak body, want a moratorium on data centre approvals.
02Eight councils brought motions, including Melbourne, Geelong, Maribyrnong and Hume.
03Geelong said large data centres could delay housing and industrial development.
04NextDC bought 169 hectares at Lovely Banks, land earmarked for more than 2,000 homes.
05The government enters caretaker mode next Tuesday ahead of the November election.

Victoria's councils have asked the state government to stop approving new data centres until it has a full planning and environmental framework in place.[1]

The Municipal Association of Victoria, the peak body for all 79 councils, passed the motion at its October state council meeting. It calls for a moratorium on approvals for all new or expanded data centres.[1]

A second motion seeks tighter regulation of the facilities' social, economic and environmental effects, including their use of land, energy and water. Eight councils brought data centre motions to the meeting, among them Melbourne, Geelong, Maribyrnong and Hume.[1]

"If you're elected or now that you're in government, this is what our 79 councils are telling us they want done around data centres," association president Jennifer Anderson said.[1]

Homes or servers

In Geelong the fight is over housing. The City of Greater Geelong said in a submission that large data centres could delay residential and industrial development "needed to support growing communities".[1]

NextDC bought 169 hectares at Lovely Banks in the Northern Geelong Growth Area this year. The land had been earmarked for more than 2,000 homes. The company is already building a data centre in nearby Corio.[1]

Councils are also unhappy with the state's Development Facilitation Program, which lets data centre companies take projects deemed significant economic development straight to the planning minister.[1]

"What it's doing is taking powers away from council and community," Ms Anderson said.[1]

An election issue

The government enters caretaker mode next Tuesday ahead of the November election. Ms Anderson said there was "limited capacity to do much" before then, and the association would lobby all parties after the vote.[1]

The government last month banned data centres near homes and schools and required them to use renewable energy and non-drinking water. A government spokesperson said data centres must bring their own energy supply and cannot be built near homes.[1]

The Coalition said it would keep data centres out of residential areas and green wedges and put them in dedicated precincts. The Greens want a moratorium on all new AI data centres and compensation for affected communities.[1]

Greens spokesperson Sarah Mansfield said the government had "run out of excuses for letting big tech corporations railroad our communities".[1]

FREQUENTLY ASKED QUESTIONS

What are Victorian councils asking for?
The Municipal Association of Victoria wants a moratorium on approvals for all new or expanded data centres until a comprehensive planning and environmental framework is in place.
Why are councils worried about data centres?
Councils are concerned about land, energy and water use, and Geelong said large data centres could delay housing and industrial development.
What rules already apply to data centres in Victoria?
The government last month banned data centres near homes and schools and required them to use renewable energy and non-drinking water.
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