Data centres push closer to Victorian homes

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Data centres plan 225MW West Footscray expansion

NextDC wants to expand its M3 data centre in West Footscray and Tottenham to 10 hectares and 225MW. Already, the site sits within 500 metres of 800 homes, a kindergarten and a maternal health centre.

At M3, NextDC also plans to lift diesel generators from 40 units to 100. Family First candidates Jane Foreman, Dianne Colbert and Matt Emerson used the proposal on 12 July 2026 to call for mandatory community consultation and a statewide planning framework.

Authorities approved the original M3 planning permit in 75 days. Residents were not consulted, and no cumulative health or environmental impact assessment has been carried out.

Marketed as “Australia’s largest hyperscale AI factory”, M3 stands in a mixed residential and industrial part of West Footscray less than 10km from the Melbourne CBD. Some homes sit just 14 metres from picket fences at the facility.

Matt Emerson said residents were “never properly consulted” before the facility was built near their homes. He pointed to homes 14 metres away and community sites within 500 metres of the complex.

Families about 300 metres from the site complain of a constant industrial hum at night. Parents also fear what diesel generator exhaust could mean for children’s lungs.

Health concerns are already high in the area. Maribyrnong records childhood asthma rates more than 50% above the state average, while community air quality sensors logged fine particulate levels at three times the WHO 24-hour guideline in 2025.

Meanwhile, Maribyrnong Council has formally objected to the expansion. Residents have also started a Change.org petition that asks Planning Minister Sonia Kilkenny to intervene.

Kilkenny’s office said the application “would be considered on its merits.” However, no cumulative review has examined the health or environmental effect of current and proposed operations together.

Lovely Banks land deal

In Geelong, NextDC has bought 169 hectares at Lovely Banks for $165 million. That land sits inside an area planned for more than 2,000 homes.

According to the City of Greater Geelong, the purchase adds to the need for state-led planning coordination. Council wants a clearer framework to manage data centre growth and protect housing outcomes.

Across Victoria, more than 30 data centres are proposed. The Victorian Farmers Federation’s Shared Ground policy for 2026 estimates their combined electricity demand at 9GW.

Nationally, 282 data centres have been built or are in development. Almost all sit near capital cities, which increases pressure in suburbs and growth corridors where housing, roads and power supply compete for space.

Amelia Hartley
Amelia Hartleyhttp://www.melbourne-insider.au
Amelia Hartley is the editor of Melbourne Insider. She has spent more than a decade in Australian newsrooms covering city affairs, politics and breaking news, with a focus on how state and federal decisions land for everyday Victorians. She leads editorial standards across the publication and oversees the newsroom's daily coverage.
Amelia Hartley
Amelia Hartleyhttp://www.melbourne-insider.au
Amelia Hartley is the editor of Melbourne Insider. She has spent more than a decade in Australian newsrooms covering city affairs, politics and breaking news, with a focus on how state and federal decisions land for everyday Victorians. She leads editorial standards across the publication and oversees the newsroom's daily coverage.

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