Victoria's new rules for data centres

Victoria has introduced new rules for data centres, requiring new facilities to bring their own renewable energy and battery storage.

Under the framework, new data centres must match their electricity demand with new generation and pay their own grid connection costs. The rules go beyond energy. Facilities must use recycled water for cooling, can't be built in residential zones and must be at least 150 metres from homes.

Victoria's data centre sector delivered AU$5.8 billion in capital expenditure last year. How these rules play out will be worth watching as the national framework takes shape.

For developers, it means generation and storage need to be delivered on the same timeline as the data centre itself. That puts more weight on getting renewable projects built on programme.

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