Australian state bans data centres from residential areas

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 Tuesday 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.

Center-left Labor premier Ben Carroll will require data centres to match new energy demand with additional generation, paying costs for 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 (164 yards) 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 Corp. estimated that the surge in spending on data centres could be as much as A$225 billion ($160 billion), with the majority in the next three years.