Stories
Victoria Bans Data Centers in Residential Areas, Mandates Renewable Energy
- •The Australian state of Victoria has banned data center construction in residential areas and requires them to provide their own renewable energy supply.
- •New rules aim to address community pushback and ensure data centers do not significantly impact local water and electricity resources.
- •Data centers must match new energy demand with additional generation, cover network upgrade costs, and use only recycled or non-drinking water for cooling.
- •A mandatory 150-meter buffer zone from houses will be enforced for all data center locations.
- •The move aligns with Prime Minister Anthony Albanese's push for national standards amid a projected A$225 billion data center spending boom.
Key Questions Answered
The Australian state of Victoria has banned data centers from residential areas, requiring a mandatory 150-meter buffer zone from houses. Additionally, operators must bring their own renewable energy supply to match new demand, pay for network upgrade costs, and use exclusively recycled or non-drinking water for cooling.
According to Westpac Banking Corp., spending on data centers could surge up to A$225 billion ($160 billion), with the majority of this investment expected to occur within the next three years.
New York imposed a one-year moratorium on large new data centers that use 50 megawatts or more of power. During this period, the state will not issue discretionary permits while developing a Generic Environmental Impact Statement to establish consistent environmental standards.
