Australian state bans data centres from residential areas

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Centre-left Labor Premier Ben Carroll will require data centres to match new energy demand with additional generation, paying costs for network upgrades. 

Centre-left Labor Premier Ben Carroll will require data centres to match new energy demand with additional generation, paying costs for network upgrades. 

PHOTO: AFP

  • Victoria has banned data centres in residential areas and requires a 150m buffer zone from houses to protect local communities.
  • Data centres must bring their own renewable energy, use recycled or non-drinking water for cooling, and pay for network upgrades.
  • The Australian government seeks national standards to balance data centre growth with community concerns amid a forecasted A$225 (S$204 billion) billion investment surge.

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One of Australia’s largest states has banned the construction of data centres in residential areas and mandated that they must “bring their own renewable energy supply”, part of a slew of rules designed to tackle growing community pushback.

The state of Victoria, home to Melbourne, announced on Sept 22 that while data centres were vital to the economy, they would need to take steps to ensure local water and electricity resources were not significantly impacted. 

Centre-left Labor Premier Ben Carroll will require data centres to match new energy demand with additional generation, as well as meet the costs of connection and network upgrades. They will also be required to use only recycled or non-drinking water for cooling. 

In addition, data centres will not be allowed in residential areas, with a mandatory buffer zone of 150m from any houses. 

Prime Minister Anthony Albanese has been pushing for national standards for data centres, attempting to balance taking advantage of the boom in demand with appeasing concerns in local communities.

Westpac Banking estimated that the surge in spending on data centres could be as much as A$225 billion (S$204 billion), with the majority in the next three years. BLOOMBERG

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