Australia's Victoria requires data centers to secure own renewable energy

The Australian state of Victoria has proposed strict new regulations requiring new data centers to secure their own renewable energy supply and storage. Announced by Premier Ben Carroll on September 22, 2026, the rules ban data centers from residential zones, schools, and childcare centers to address growing community pushback. Operators must also use recycled or non-drinking water for cooling and bear all network connection costs, even as Australia faces a projected A$150 billion investment boom by 2030.

Victoria renewable energy mandate

• ▪Victoria Premier Ben Carroll announced the proposed rules under Victoria's Sustainable Data Centre Action Plan on September 22, 2026, calling them the "strongest, clearest data centre rules in the country."
• ▪The Australian state of Victoria proposed rules on September 22, 2026, requiring new data centers to secure their own renewable energy supply and storage

Data center resource strain

• ▪Data centers in the state of Victoria currently use less than 1% of the state's drinking water for cooling, according to the Victorian government
• ▪Rapidly growing energy and water demand from data centers, driven partly by artificial intelligence growth, has increased strain on local resources in Australia

Community pushback against data centers

• ▪Local communities across Australia have pushed back against the data center sector due to its growing strain on land, water, and power resources
• ▪The Victorian government designed its September 22, 2026, data center proposals specifically to address growing community pushback over resource impacts

Victoria data center zoning restrictions

• ▪The proposed Victorian zoning rules would prohibit data center construction in rural areas that cannot support the necessary infrastructure
• ▪The Victorian government's proposed rules would ban the construction of data centers in residential zones, near schools and childcare centers, and in rural areas

Australian data center investment boom

• ▪The Australian federal government previously promised to set restrictions on data center resource use starting in 2027
• ▪Economists project that the data center investment boom in Australia may total A$150 billion ($106.82 billion) by 2030

Debatable claims

• ▪Victoria should require new data centers to secure their own renewable energy
• ▪Victoria's ban on data centers in residential and rural areas is justified
• ▪Victoria should prohibit data centers from using drinking water for cooling