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      Victoria Introduces Strict Regulations for New Data Centres

      The government of Victoria, Australia, has announced new regulations for data centre developers, requiring them to source their own renewable energy and prohibiting the use of drinking water for cooling purposes. Premier Ben Carroll stated that these measures aim to protect residential areas and ensure that data centres contribute positively to local communities. The new rules include a 150 metre buffer zone between data centres and homes, as well as restrictions on building near schools and childcare centres.

      Developers will also be mandated to contribute to a local investment fund that supports technical and further education institutions and parks in the surrounding areas. While the government plans to implement these regulations promptly, they will not apply retroactively, meaning that projects already approved, such as NextDC's $1 billion development in Port Melbourne, will not be affected by the new requirements.

      The changes come in response to increasing community concerns regarding the rapid expansion of data centres in Victoria, particularly in Melbourne's inner west. Data Centres Australia chief executive Belinda Dennett criticized the regulations, arguing that they unfairly single out data centres compared to other industrial sectors like warehouses and logistics. The sector currently operates about 50 data centres in Victoria, with energy consumption expected to quadruple by 2030, highlighting the growing demand for data infrastructure in the region.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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