Victoria’s new data centre rules could make some projects economically unviable and send investment interstate, an industry body has warned.
The Victorian government’s Sustainable Data Centre Action Plan introduces new requirements covering energy, water and community effects.
The rules would prevent new data centres from being built close to schools and childcare centres or in rural areas without sufficient infrastructure. They will also require a 150-metre buffer between new data centre buildings and homes.
Under the plan, new data centres will need to match additional electricity demand with new renewable generation and storage, and use recycled or other non-drinking water for cooling.
Developers will also have to contribute to community benefits and associated infrastructure costs.
Data Centre Council of Australia chief executive Belinda Dennett said the industry supports much of the plan, but had concerns about the 150-metre setback.
“The setback rules were somewhat of a surprise,” she said.
Suitable industrial land with access to power was already scarce in metropolitan areas, added Dennett.
“This just means now you’re reducing the footprint of what you can build on these sites. It’s reducing the number of sites that may be economically viable.
“That potentially sends that investment elsewhere.”
Dennett said Victoria is increasingly competing with other states for data centre investment.
“There are options. It doesn’t have to come to Victoria,” she said.
Australian data centre operator CDC Data Centres welcomed the announcement. In a published statement the operator said clearer rules could provide greater certainty for both investors and communities.
“We welcome Victoria providing greater certainty around future data centre development,” CDC chief executive Greg Boorer said in the statement.
“Clear frameworks help provide that confidence by establishing transparent expectations for industry, creating certainty for investors and helping communities better understand how projects will be assessed.”
Dennett also questioned why the blanket setback would be applied specifically to data centres, when existing planning rules already allowed restrictions based on a development’s impact.
“A factory, a warehouse, a logistics hub. And some of those are higher impact than a data centre,” Dennett said.
“This is sort of regardless of impact; here’s a blanket rule.
“To me, it’s not achieving anything that wasn’t already able to be done if you could show that there was an adverse impact from building that data centre in that location.”
- This article first appeared on SmartCompany. You can read the original here.
