Australian residents and councils oppose datacentre developments across three states
Updated
Updated · The Guardian · May 2
Australian residents and councils oppose datacentre developments across three states
3 articles · Updated · The Guardian · May 2
In West Footscray, Lane Cove and Hazelmere, projects include NextDC's 225MW M3 expansion, Sydney's proposed 90MW Project Mars and a planned 120MW Perth facility.
Residents cite construction noise, diesel generator emissions, heavy power use, visual intrusion and risks to bushland, wetlands and the culturally significant Helena River, while councils challenge siting and planning processes.
Industry says datacentres are critical infrastructure bringing jobs and AI capacity, but state governments are still assessing proposals as community opposition grows over developments near homes, schools and parks.
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Managing Australia's Data Centre Expansion: Water Scarcity, Rising Electricity Use, and Community Opposition in 2025–2026
Overview
Between 2025 and 2026, Australia saw growing community opposition and government scrutiny of data centre projects due to concerns over water scarcity, rising electricity demand, health risks from diesel emissions, and unfair infrastructure costs. Notable conflicts at AirTrunk’s Kemps Creek, NextDC’s M3 in Melbourne, and Hazelmere near Perth highlighted these issues, prompting a NSW parliamentary inquiry. In response, the industry pledged 100% renewable energy by 2030, while governments introduced regulations and incentives. However, power constraints and environmental concerns caused project delays, driving a strategic shift toward siting data centres in renewables-rich regional areas. Policymakers are now exploring enforceable sustainability standards and stronger community engagement to balance growth with environmental and social well-being.