Australia moves to bar new data centres near homes as residents demand relief
The federal government announced rules banning future data centres near residential areas, schools and prime farmland, while residents living next to existing facilities say they have been left without recourse.
In a speech to the Business Council of Australia, Prime Minister Anthony Albanese announced new national rules that will stop future data centres from being built close to homes, schools or prime agricultural land and will require developers to supply more renewable energy than they draw. The policy aims to preserve social licence, keep energy bills stable and protect water security. Residents of West Footscray, where NextDC's M3 facility sits only 300 metres from homes, report persistent humming, bright lights, traffic congestion and occasional power cuts, saying the development has lowered property values and raised health concerns.
Experts from Western Sydney University, Australian National University and the University of Sydney say the rules leave a gap for existing sites, which lack clear standards for noise, water use and community impact monitoring. Community members are pressing for compensation measures such as market-rate buybacks and relocation costs, while the government declined to comment on retroactive actions. NextDC has not responded to the demands.
