Victoria imposes strict rules on new datacentres, banning them in residential zones
Victoria's government announced a ban on datacentres in residential areas and mandated renewable power and community contributions for future facilities.
The Victorian cabinet approved a comprehensive sustainable datacentre framework, set to be released by Premier Ben Carroll. The rules bar new datacentres from residential neighbourhoods, schools and childcare facilities and enforce a 150-metre setback from homes. Companies must procure their own renewable energy, fund network upgrades, and employ recycled or non-potable water for cooling systems.
Additional obligations include a local investment guarantee that can fund jobs, training, parks or other community assets, as well as mandatory fair consultation and adherence to existing noise, fire and safety standards. The policy targets controversial projects like NextDC's proposed 10-hectare Footscray expansion and Syncline Energy's 350-hectare, 2.4 GW site in Plumpton, which have drawn criticism from local and federal Labor MPs. The plan aims to balance economic benefits with environmental protection and community interests ahead of the upcoming state election.
Why it matters
The rules reshape how large data facilities can be built in Victoria, affecting energy use, local jobs and community safety.
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