Council body demands data centre moratorium as planning approvals rise

The Municipal Association of Victoria has demanded the state government impose a moratorium on data centres.

The peak body for all 79 councils in Victoria passed a resolution at its state council meeting calling for a moratorium on approvals for all new or expanded data centres until a "comprehensive" planning and environmental framework is established.

The move by councils places pressure on the major parties to respond to mounting community opposition ahead of next month's election.

Councils across Victoria have banded together to demand the state impose a moratorium on data centres, putting pressure on the major parties to respond to mounting community opposition ahead of next month's election.

The Municipal Association of Victoria (MAV), the peak body for all 79 councils in Victoria, passed a resolution at its October State Council meeting calling for a moratorium on approvals for all new or expanded data centres until a "comprehensive" planning and environmental framework is established.

A second motion calling for better regulation of the social, economic and environmental impacts of data centres was also passed, amid ongoing concerns over land, energy and water use.

The State Council is the MAV's governing body made up of delegates from each council who meet twice a year, and vote on matters that shape the MAV's advocacy and strategic direction.

MAV president Jennifer Anderson said the resolutions "added weight" to local government concerns around data centres, with the peak body now able to advocate on behalf of all Victorian councils to the state and federal governments.

"They have clearly told us this is important to them; this is what they want."

Eight Victorian councils brought data centre motions to the MAV's October State Council, including Melbourne, Geelong, Maribyrnong and Hume, reflecting the sector's increasing concern over the facilities' impact on local communities.

The City of Greater Geelong's submission said large-scale data centres could delay residential and industrial development "needed to support growing communities."

Data centre giant NextDC this year purchased 169 hectares of land in Lovely Banks in the Northern Geelong Growth Area — land that had been earmarked for more than 2,000 new homes as part of a plan to help solve the city's housing shortfall.

In nearby Corio, one of Geelong's largest suburbs, construction of a NextDC data centre is already underway.

With the Victorian government entering caretaker mode next Tuesday, Ms Anderson acknowledged there was "limited capacity to do much", but said the MAV would engage in advocacy both before and after the election with all parties.

"Once the government of the day is decided, then we will go pretty hard at getting all elected state officials — regardless of whether they're the government of the day, the opposition, crossbench et cetera — to know what these priority motions were," Ms Anderson said.

"Let's have a proper partnership. Let's look at what the impacts could be on the ground to our communities.

"We all look after the same communities. It's about having those conversations early before things get legislated."

The cities of Melton, Brimbank, Maribyrnong and Hume had separately called for an immediate moratorium on data centre approvals earlier this year.

In a submission to a recent Senate inquiry into artificial intelligence and data centres, the MAV said local government sat on the "frontline" of the impacts of AI infrastructure, increasingly tasked with balancing housing growth, infrastructure strain and community expectations.

The peak body criticised the government's Development Facilitation Program for allowing data centre companies to lodge planning applications directly with the planning minister rather than local councils, for projects considered to be a "significant economic development".

"What it's doing is taking powers away from council and community," Ms Anderson said.

The Victorian government announced new data centre regulations last month, including banning them near homes and schools, and mandating the use of renewable energy and non-drinking water.

"In Victoria, we set the rules — data centres must bring their own supply to protect our energy costs — and they can't be built near homes," the government spokesperson said.

An opposition spokesperson said under a Liberal and Nationals government, data centres would not be built in or next to residential areas, or green wedges.

"They will be located in designed Data Centre Precincts, appropriately distanced from homes," the spokesperson said.

The Greens have called for a moratorium on all new AI data centres, and compensation for affected communities.