Melbourne resident Sean Brown walks his 19-month-old son past the NextDC datacentre in West Footscray, a facility touted as 'Australia's largest hyperscale AI factory'. He despises the constant construction noise, the hum of generators, and the exhaust from diesel engines powering the servers inside. Brown worries about the long-term environmental impact on his child's health and future.
Growing Resentment Against Datacentres
Across Australian cities, communities are pushing back against the rapid development of massive datacentres, often referred to as AI factories. Residents argue that these facilities are being rushed through planning processes without proper assessment of their environmental and social costs. Proponents, however, maintain that Australia must embrace the data boom to remain economically competitive.
The M3 datacentre in West Footscray has already expanded multiple times. If fast-track approval is granted by the Victorian government, it could double in size by 2027, covering 10 hectares and drawing 225MW of power. Diesel generators on site are expected to increase from 40 to 100. NextDC CEO Craig Scroggie described the expansion as 'stunning' and essential for Australia's digital future.
Local resident Brown, who works in tech, acknowledges the need for datacentres but calls for better planning. 'It's like they've just gone: Let's just maximise this and don't even consider the impact,' he said. The Maribyrnong council opposes the expansion, but the Victorian government is considering the proposal.
Council 'Sidelined' in Sydney
In Lane Cove, near Sydney, a proposed 90MW datacentre named Project Mars would be the fourth in the area, occupying 40% of local industrial zones. The council argues the 22,000sqm facility exceeds height limits and would be visually intrusive next to bushland and homes. Local resident Daniel Bolger says the council has been sidelined, and there are concerns about proximity to schools and energy demands. 'This is the cluster issue,' he said.
NSW Planning Minister Paul Scully stated that public input is encouraged and a full merit-based assessment will be conducted. The developer, Goodman Property, did not respond to requests for comment.
Concerns in Western Australia
In Hazelmere, east of Perth, community opposition is mounting against a planned 15,000sqm, 120MW datacentre. Kate Herren of Trillion Trees Australia described it as 'bigger than a Bunnings warehouse' and unsuitable for the location. Walter McGuire, chair of the Bibbul Ngarma Aboriginal Association, expressed grave concerns about the impact on the culturally significant Helena River and surrounding wetlands.
GreenSquareDC, the developer, stated the site is in an established industrial area with infrastructure, and they are committed to engaging constructively during planning.
Industry Perspective
Belinda Dennett, CEO of Data Centres Australia, acknowledged that construction can be confronting near residential areas but stressed that developers meet strict standards. She argued that Australia has a significant opportunity to benefit from datacentre investment, creating jobs and businesses. Without developing its own AI infrastructure, she warned, Australia would become an importer of foreign technology lacking Australian values.
As the debate intensifies, residents like Brown remain steadfast: 'There's no upside to it and it's just getting worse.'
