Australia is experiencing a rapid increase in data centers, with 160 currently operational and 90 more planned, positioning the nation as a significant global investment destination for such facilities. However, this growth is drawing criticism from residents concerned about the environmental and societal impacts.
One focal point of local opposition is the West Footscray area, where two data centers have become emblematic of resident complaints. The facility on Indwe Street, equipped with approximately 130 diesel backup generators and storing 2.4 million liters of fuel, is situated near a kindergarten, a maternal health clinic, and a primary school. Residents Sean Brown and Warisa Somsuphangsri expressed that the reality of the Indwe Street center deviates from initial promises made by NEXTDC chief executive Craig Scroggie, who had described a company focused on environmental impact, the use of renewable energy sources like solar and wind, and designs sympathetic to local communities. Brown and Somsuphangsri noted that the approved capacity of 13.5 megawatts has escalated to a 225-megawatt facility, with 40 diesel generators already on-site, a number that could increase if current expansion plans are approved. They also reported noise pollution from the facility, stating that residents have resorted to using white noise machines within their homes.
A second facility, the Perri Melbourne Data Centre on McArthur Street, is also located in close proximity to a kindergarten and a maternal health clinic. While assessed as not being in a bushfire-prone area, local residents claim they were inadequately consulted about the plans. The development of these two centers has resulted in the loss of ten hectares of industrial land less than ten kilometers from the Melbourne CBD.
Further data center developments are anticipated in areas like Plumpton, in Melbourne's northwest. Brittney Henderson, a candidate for the Western Metropolitan Region, has voiced strong opposition to a proposed site in Plumpton, citing its location on a floodplain. Henderson expressed concern that the construction of a large concrete structure could exacerbate flooding issues for nearby communities, wildlife, and native vegetation. She also highlighted the potential destruction of significant Indigenous cultural artifacts and native grasslands, questioning the prioritization of AI development over cultural heritage and environmental risks, especially given the increasing frequency of flood events.
The proposed 'Victorian AI Hub' in Plumpton is reportedly planned to cover approximately 350 hectares and possess a 2.4-gigawatt capacity, a demand that would exceed the output of the state's largest remaining coal-fired power station. Resident Lilah, who lives near the proposed site, noted that the area already experiences higher land surface temperatures during heatwaves due to a lack of tree canopy and green space, leading to frequent power outages. This exacerbates energy consumption for cooling, straining the existing power grid.
Reports from the Climate Council indicate that data center energy consumption could triple by 2030, with a concurrent surge in water usage expected. This trend raises concerns about potential increases in energy and water bills for residents. Some analyses suggest that power prices in New South Wales and Victoria could rise by approximately 26% and 23% respectively by 2035. The data center industry is also projected to consume 17 gigaliters of water over the next five years.