Victoria implements new energy rules for data centres and renewable infrastructure

Victoria is implementing significant energy and infrastructure shifts across several sectors. The state government has announced a Sustainable Data Centre Action Plan, which would require new data centres to source their own renewable energy and storage, match new electricity demand with new generation, and cover connection and network upgrade costs. These regulations also include planning restrictions, such as a 150-metre buffer from homes and bans on construction near schools or residential zones, alongside requirements to use recycled or non-drinking water for cooling.

In the broader energy landscape, the State Electricity Commission (SEC) has commissioned a 1.3 MW rooftop solar system at the Melbourne Sports and Aquatic Centre, expected to provide 24% of the venue's energy. Meanwhile, the state is mapping a preferred 60 km route for a new transmission link to support offshore wind farms, aiming to meet targets of 2 GW by 2032. In the Latrobe Valley, Flow Power is progressing with the Bennetts Creek Battery project and planning a larger second stage to support grid integration.

However, challenges remain regarding grid capacity. VicGrid has cancelled the Central-North Renewable Energy Zone due to limited remaining capacity in the area. Additionally, in Western Australia, Horizon Power is working to replace diesel and gas power in remote towns like Halls Creek with solar-battery hybrid systems.