Victoria mandates renewable energy and storage for new data centres

The Victorian government has introduced new regulations for data centre developments, requiring operators to provide their own renewable energy and storage solutions. To protect household energy costs and community interests, new facilities must be located at least 150 metres from homes and are prohibited in residential zones, near schools, or in certain rural areas.

Under the new rules, developers must also implement a Local Investment Guarantee, a community benefit scheme that may include funding for local jobs, training, and infrastructure. Operators will be required to hire locally and train Victorian workers. The state government noted that the data centre sector contributed AU$5.8 billion in capital expenditure to Victoria last year.

Outer Melbourne Councils (OMC) has expressed support for the safeguards regarding energy, water, and siting, but emphasized the need for careful planning. OMC Acting Chair Naomi Joiner stated that while councils are not opposed to data centres, they must be located in appropriate areas and ensure that the costs of network upgrades and infrastructure do not fall on local households or small businesses.