Victoria's data centre plan sets siting, energy and water conditions
Victoria's data centre plan adds a planning land use category, 150m residential buffer, 55 dB night noise limit, renewable and recycled-water offset duties and new referral controls, ahead of Commonwealth standards expected in 2027.
Victoria's Sustainable Data Centre Action Plan, released September 2026, sets the state's framework for assessing data centre proposals. It creates a new "data centre" land use definition for Victorian planning schemes, bars facilities on residentially zoned land and in rural zones absent adjacent critical infrastructure, imposes a 150-metre buffer from homes and a statewide 55 A-weighted dB night-time noise limit (with a penalty for cooling tonal hum), and extends mandatory referral to WorkSafe Victoria, Fire Rescue Victoria, VicGrid and the relevant water corporation. Proponents are expected to offset operational electricity via new renewable generation and storage, cover connection costs, and use recycled or non-potable water for cooling or fund replacement of drinking water used, plus meet local jobs and training commitments. A Minister for Planning statement of expectations dated 5 October 2026 adds quantifiable limits for permits lodged on or after 23 September 2026.
Why it matters: approval risk now sits in site selection, power and water sourcing and community engagement, shaping project economics and financing for hyperscale, colocation and AI-infrastructure developers, and clients building Australian pipelines must track Victorian conditions.
Next: siting, design and built-form guidance expected in 2027, and Commonwealth legislation anticipated in early 2027 after the August 2026 National Cabinet agreement on mandatory national standards for large data centres.