Under new rules set to be unveiled by Victoria’s premier, Ben Carroll, datacentres will be restricted from being built in residential areas, must use renewable energy, and will be required to provide benefits to the local community. The sustainable datacentre action plan, approved by the state cabinet, aims to establish what the government calls the “strongest” and “clearest” datacentre regulations in the country. The plan emphasizes that datacentres must be self-sufficient in terms of energy, protect residential areas, and contribute to local economies. Premier Carroll stated that these rules will ensure datacentres “pay their way” and allow the community to share in their economic benefits. The new regulations include a ban on datacentres near schools, childcare centres, and in rural areas that lack the infrastructure to support them. A 150-metre buffer zone will be required between new datacentres and homes. Additionally, datacentres must source their own renewable energy, cover the costs of connecting to the electricity grid, and use recycled or non-drinking water for cooling systems or offset their usage. They will also be required to invest in the local community through a “local investment guarantee,” which can include creating jobs, funding vocational training, or supporting local parks and infrastructure. The plan also mandates “fair community consultation” and enforces existing noise limits, fire, and safety regulations. While the federal government had previously proposed requiring all new datacentres to be powered by renewable energy instead of fossil fuels, it had to backtrack after opposition from Queensland and Northern Territory leaders. Meanwhile, Victoria’s former premier, Jacinta Allan, had aimed to make the state the datacentre capital of Australia. Despite these new rules, some datacentre projects are already moving forward. NextDC has applied for fast-tracked approval to expand its Footscray datacentre, known as M3, which would cover 10 hectares and consume 225 megawatts of power. Some homes are within 15 metres of the site, which is currently zoned as industrial. Local MP Katie Hall has long opposed the expansion. NextDC has also acquired land near Geelong, raising concerns from MP Ella George. Similarly, Syncline Energy plans to build a massive 350-hectare, 2.4 gigawatt datacentre in Plumpton, which has drawn opposition from federal Labor MPs due to its large energy demands.