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150-metre setback could make Victorian data centre projects unviable

Victoria has tightened the rules for new data centres, with industry welcoming greater certainty but warning some restrictions could push investment interstate.
Melbourne skyline ahead of the 2026-27 Victorian state budget. Australian startups
A view of the Melbourne skyline. Image: Adobe Stock

Victoria’s new data centre rules could make some projects economically unviable and send investment interstate, an industry body has warned.

The Victorian government’s Sustainable Data Centre Action Plan introduces new requirements covering energy, water and community effects.

The rules would prevent new data centres from being built close to schools and childcare centres or in rural areas without sufficient infrastructure.

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