Victoria has proposed new rules requiring data centers to secure their own renewable energy and storage capacity. Under the state’s Sustainable Data Centre Action Plan, operators would also need to match new demand with new generation and cover grid connection and network upgrade costs. The measures aim to have data centers contribute power to the grid rather than primarily consume it.
The proposed rules would require data centers to use recycled or non-potable water for cooling, or offset their water use and fund necessary infrastructure upgrades. New facilities would be restricted from residential and unsuitable rural areas, with a 150-meter buffer from homes. Operators would also need traffic management plans. The proposal includes community benefits such as local investment, jobs, training, parks, and priority hiring of workers from Victoria.
Victoria’s premier said the proposed rules would require data centers to provide their own power, protect residential areas, and cover associated costs while ensuring local communities benefit economically. The proposal follows similar efforts in other Australian states. New South Wales recently proposed requiring data centers to source at least 40% of their power from wind, while the federal government dropped plans for a nationwide renewable energy mandate after opposition from some regions.
