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Data centres: water, power and neighbours

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Is a data centre being built or proposed near where you live or work? What has the local experience been, such as traffic, noise, construction or jobs?

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Sydney Water says recycled water could supply data centres; a water researcher says that demand was not in the city's water strategy. Should recycled water go to data centres, to drought supply, or be shared under set rules?

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Victoria plans to require new data centres to bring their own renewable power and storage. Would that protect household power prices and supply, or risk pushing investment to other states?

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The industry body says a 150-metre buffer from homes treats data centres more strictly than warehouses; the Victorian Government says homes need protecting. Where should the line be drawn?

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Residents near one Melbourne facility are seeking buybacks and payments. When a large facility is approved next to existing homes, what, if anything, should neighbours be entitled to?

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The Greens have called for a pause on new data centres until regulation is settled; Victoria has announced conditions instead, and Sydney Water says data centres would pay their way. Which approach gives communities more certainty?

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Unions and academics propose that big tech contribute computing power and funding for Australian-owned AI. Is that a fair condition for building here, or a deterrent to investment?

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Sydney Water says data centres would pay their way without affecting other customers; a water researcher says the demand was not in the 2022 strategy. What would you want to know about drought planning before recycled water is allocated?

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Victoria's rules will not apply retroactively to applications already being assessed. Is that fair to developers who applied under the old rules, or does it leave communities exposed?

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For people working in tech or energy: how much new electricity demand are data centres adding where you are, and which official forecasts are worth reading? Share the source.

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What local benefits, such as TAFE partnerships, jobs or parks, would make a data centre a good neighbour, and how should they be enforced?

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Several rules are still proposals or under consultation. What would you want confirmed about how water, power and buffer rules will be applied and checked?

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Official documents, not forum opinions. · Sources checked 2 October 2026

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What this means

Victoria's announced rules

On 22 September 2026 the Victorian Government announced that new data centres must bring their own renewable energy and storage, use recycled or non-drinking water for cooling (or offset and pay for upgrades), stay out of residential zones with a 150-metre buffer from homes, avoid schools and childcare, and deliver local benefits. The ABC reported planning changes will be made 'as soon as possible', and applications already under assessment are not covered retroactively.

Sydney recycled water (reported)

The ABC reported that Sydney Water's $1.2 billion Badu Yarragul facility at Kemps Creek processes 35 million litres a day and that its managing director sees an opportunity to supply data centres, while a water expert said that demand was not factored into the 2022 Greater Sydney Water Strategy.

Industry response (reported)

Data Centres Australia called Victoria's changes disappointing, arguing the 150-metre setback singles out data centres compared with warehouses and logistics facilities.

Senate inquiry and residents (reported)

At Senate inquiry hearings, residents near NextDC's facility in Melbourne's west sought buybacks and payments, and the inquiry chair said Australians need to get something out of this. NextDC said it was working through community concerns.

Proposal for big tech contributions (reported)

Unions and academics proposed that big tech companies building Australian data centres contribute computing capacity and funding for Australian-owned AI. The Prime Minister said the Government would engage constructively but did not commit to the proposal.

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