Data centre boom reaches Geelong

A NEW data centre under construction in Corio has thrust Geelong into Victoria’s rapidly expanding AI infrastructure sector, as debate continues over the industry’s energy and water use.

The Labor government wants Victoria to become “a national leader in the AI evolution” and says the sector could generate billions of dollars in investment, but critics argue there are no mandatory standards governing how data centres are built and operated.

Data centres are the backbone of digital services such as artificial intelligence and cloud computing, but have attracted scrutiny globally because of their significant energy and water requirements.

About 40 data centres are operating across Victoria, with a similar number in development or under construction.

Among them is the GE1 Geelong Data Centre, being built on Obriens Road for Australian operator NEXTDC.

The 4.4MW facility is relatively small compared with NEXTDC’s 225MW centre in West Footscray, but the company says GE1 will provide faster local data processing, improved resilience and enhanced connectivity.

“Not long now until the electrons will be flowing,” NEXTDC’s Adam Gardner wrote in a post on social media last month.

Labor announced in November it would put $5.5 million towards a Sustainable Data Centre Action Plan.

While the government says the plan is already guiding industry development, Parliament’s upper house last month voted to compel the government to release of further details.

Speaking in Parliament, Greens member for Western Victoria Sarah Mansfield said the plan had no mandatory standards.

She described Labor’s attitude to data centres as “approve now, deal with the problems later”.

“We only have to look abroad… to see why this is an absolutely terrible approach,” she said.

“The energy and water needs are devastating communities and ecosystems overseas, and countries are now being forced to play catch-up.

“When we know what it leads to, why on earth wouldn’t we take the opportunity to get the settings right first?”

Labor Member for North-East Metropolitan Sonja Terpstra said the plan would unlock up to $25 billion in capital expenditure.

“Thanks to our outstanding land, energy and talent, we are emerging as a prominent data centre hub in the Asia Pacific,” she said.