Residents near Melbourne data hubs demand cleanup and compensation as Senate probes AI impact

Residents of West Footscray, Tottenham and Kingsville allege that the nearby NextDC and Perri Melbourne data centres emit diesel fumes, create light pollution and pose fire risks, prompting calls for remediation and financial redress. Their advocacy group, Citizens for Tottenham, seeks voluntary buy-backs for roughly 2,500 households within 500 metres, offering market-based valuations, covering stamp duty and moving expenses, and providing a $10,000 one-off payment plus $5,000 per year for those at the facility boundaries.

The Victorian government unveiled a policy banning new data centres within 150 metres of homes and schools and requiring renewable energy use, but it does not retroactively affect existing or pending projects such as NextDC’s expansion. Senate inquiry chair Sarah Hanson-Young, a Greens senator, backed the compensation demands, noting that only large AI firms currently benefit. The inquiry, which heard testimony from residents and local councils, will hold its final hearing on October 1.