Tuesday, 17 February 2026

 Sarah MANSFIELD (Western Victoria) (17:49): (2309) My adjournment matter is for the Premier, and the action I seek is for a moratorium to be placed on new data centres in Victoria until mandatory standards are developed to ensure they do not negatively impact our waterways or drive up water bills for Victorian households. Last week, while speaking about this government’s plan to entice AI tech giants to build data centres in Victoria, Minister Pearson was quoted as saying:

You put AI on a leash and you let it run.

It is unclear what that leash is, as this government continues to roll out the red carpet and roll back regulations for the resource-intensive centres. Victoria is already experiencing rapid growth in data centre development, with 58 centres currently in operation and many more large-scale facilities in the pipeline. Data centres are promoted as vital infrastructure for the digital age and the bringers of widespread economic prosperity. What is too often overlooked is that these centres use an enormous amount of water for their evaporative cooling systems; depending on the size of the facility, this method can use millions of litres of potable water a day. Evaporative cooling is the preferred method in Victoria, largely due to its lower energy cost, the low cost of water and the permissive regulatory environment that exists in this state. Many of the new large centres this government is hoping to attract to Victoria will rely on evaporative cooling systems. Evaporative systems are constantly losing water to the atmosphere, meaning they need frequent replenishment. Closed loop systems exist but they are in the minority, and while they use 50 to 75 per cent less water – a significantly lower amount – it is still a very large amount of water. With more data centres coming online, the load on Victoria’s already strained waterways will become increasingly unsustainable.

Water in Victoria remains relatively inexpensive, and regulations are much more permissive compared with other jurisdictions. For example, in Europe and even in the US facilities are often required to use recycled water before potable water, and dry cooling is mandated in areas with scarce water supply. Closer to home, in New South Wales, the government there has introduced tighter water efficiency standards. Victoria’s complete lack of water, energy and development regulation for data centres will create an environment where resource-heavy developments go completely unchecked. In effect we are providing access to a scarce resource at low cost, with little to no oversight. Increased water demand would place extreme stress on a state already grappling with climate change. We have less rainfall and increased evaporation out of our water systems, meaning a declining water store for many of our rivers and catchments. It is dangerously irresponsible, knowing the state that water systems are in, and this green light to this highly water-intensive industry would be like letting a rabid dog off a leash. So I call on the Premier to implement a moratorium on new data centres until mandatory standards are in place. They must prioritise non-potable and recycled water use, protect environmental flows and ensure that households are not subsidising corporate profit.