Who bears the cost of AI infrastructure?
All over Australia, state governments are locked in an arms race to build data centres. Lots of them. This is despite growing international evidence that AI infrastructure comes with terrible consequences for our environment, our energy system, and our communities.
But the Victorian Government isn’t concerned about that. They want to become the data centre capital of Australia. They want to cash in on the huge amounts of investment and deal with the consequences later. Maybe.
I first raised the issue of data centres in mid-2025, and the chorus of voices speaking out against them has only grown larger. On 1st of July I attended Borderlands Cooperative‘s organising meeting, which called for a ‘moratorium’ on data centre approvals in Victoria until there is a comprehensive regulatory framework and social licence for them.
A social licence means that the public understands what is happening, the pros and cons, and, essentially, has confidence that politicians are managing the situation in line with the public’s expectations. We simply don’t have that right now.
Rather than engage in public consultation, the Victorian Government has fast-tracked data centre approvals and kept their much-lauded ‘Data Centre Sustainability Action Plan’ a secret.
Communities in the West deserve better
Since the middle of last year, I’ve been sounding the alarm on Victoria’s frenzied rollout of AI data centres in Parliament, including the hyper-scale expansion in West Footscray. Over 19 data centres are currently applying for permits in Melbourne’s West.
If NextDC’s West Footscray expansion is approved, the facility will use as much drinking water as an entire suburb or regional town. Only metres from homes, the facility is a nuisance to locals. It operates 24/7 and generates excessive levels of noise, light, diesel fumes, and heat.
Frustrated local residents were recently interviewed in a report by Channel Seven’s Spotlight program.
Another hyper-scale centre spanning 350 hectares is planned for Plumpton, which will need its own gas turbines and require more power than Loy Yang A.
I’ve sponsored a Parliamentary Petition calling on the Government to ensure the environmental, cultural, social and infrastructure implications of the proposed Victorian AI Hub are fully assessed and publicly considered before any planning decisions are made.
Those who know the full extent of the threats posed by data centres speak out
Even former Federal Science Minister, Ed Husic MP, has expressed concerns with Australia’s ‘hands off’ approach. He told ABC’s Four Corners:
“I think we run the risk of a terrible judgement potentially from future generations … we had an opportunity to rein in risk and to really get the best out of AI and we didn’t take it.”
I wholeheartedly agree with these statements by Mr Husic.
Communities shouldn’t be expected to bear the cost of the ruthless pursuit of investment. We need proper regulations and safeguards now, so that AI’s benefits can be shared by all, and it won’t cost the earth.
You can get involved in the following ways:
Frequently asked questions
More reading:
Climate Council Report: Clouded Future: Managing the Risks of the Data Centre Boom
Greenpeace Report: Energy Vampires: The AI Data Centres Draining Australia
New York enacts nation’s first moratotium on data centres | New York Times
