- Published:
- Tuesday 22 September 2026
Data centres aren’t just for AI – they support banking, healthcare, transport and emergency services.
We all rely on them, so it’s far better to have them here than overseas.
But we will set the rules.
The Carroll Labor Government will require new data centres to:
- Power themselves – with their own renewable energy supply
- Protect homes and roads – by staying away from residential areas
- Pay their way – by giving back to the community
These are the strongest, clearest data centre rules in the country.
If we get the rules right, then data centres mean more jobs and investment for Victoria.
The benefits of data centres should stay local, too.
That’s why they’ll be part of a new Local Investment Guarantee, funding local benefits like jobs, TAFEs and parks.
Data centres must power themselves
Data centres use a large amount of electricity and demand is rising. That growth can’t come at the expense of Victorian consumers.
Under our rules: data centres will bring their own renewable energy supply and storage.
They’ll be required to match new demand with new generation, plus meet connection costs and network upgrades.
Like the Prime Minister, we want data centres to be “net generators not net users”.
These rules will ensure it – and protect our energy bills in the process.
Data centres currently use less than 1 per cent of Victoria’s drinking water for cooling, but the right amount is zero.
Under our rules: data centres will use recycled or non-drinking water for cooling.
If they can’t do it immediately, they’ll have to offset what they use, and pay for infrastructure upgrades they need.
Data centres must protect homes and roads
Data centres power our day-to-day needs – but our homes and communities must come first.
Under our rules: data centres will be prohibited in residential zones.
They won’t be built near schools and childcare centres, and in rural areas that can’t support them.
People living next to industrial zones deserve certainty that appropriate separation distances will be maintained.
Under our rules: a clear buffer zone will apply for new data centres.
The buffer is 150 metres between a data centre building and homes – further than the width of the MCG.
Data centres generate relatively few truck movements when up and running, but we don’t want traffic to worsen.
Under our rules: data centres will have a responsible traffic management plan during construction and operation.
Data centres must pay their way
Last year, the data sector delivered $5.8 billion in capital expenditure into Victoria.
That investment benefits everyone – but communities that host data centres should benefit most.
Under our rules: new data centre developments will deliver a Local Investment Guarantee.
These local benefits, which will be subject to consultation, could include jobs, TAFEs, parks and more.
Every data centre supports hundreds of jobs in construction, and many skilled, long-term jobs when up and running.
Under our rules: data centres are required to train Victorians.
They’ll also hire where they build by working with local employment and training services.
This is all part of Victoria’s new Sustainable Data Centre Action Plan
Our plan is released today, and it supports the Commonwealth’s framework for data centres.
Further rules apply as part of both our comprehensive plan and existing Victorian regulations.
This includes mandating fair community consultation and meeting existing noise, fire and safety rules.
We already had strong rules. Now we're making them stronger.
The new rules won't be retrospective for applications under assessment, but we expect data centres to continue to work with locals and respond to their concerns.
Liberals don’t believe in guardrails for big tech. They’d let it rip.
Only Labor will ensure data centres power themselves, protect homes and pay their way – so we share the benefits.
For more information: djsir.vic.gov.au/sustainable-data-centre-action-plan
Quotes attributable to Premier Ben Carroll
“In Victoria, we set the rules – data centres must power themselves, protect homes and pay their way.”
“If we get that right, we can all share in their economic benefits, especially the local community.”
Quotes attributable to Minister for Artificial Intelligence and the Digital Economy Anthony Carbines
“Data centres power our lives and support banking, healthcare, transport and emergency services”.
“Companies like Amazon and Microsoft choose to invest in Victoria – that will continue within sensible guardrails.”
Quotes attributable to Minister for Planning Sonya Kilkenny
“Data centres must bring their own supply to protect our energy costs – and they can’t be built near homes.”
“Under our rules, Victorian communities will benefit with a Local Investment Guarantee.”