Tuesday, 2 June 2026

 Anasina GRAY-BARBERIO (Northern Metropolitan) (14:05): (1326) My question is to the Minister for Water. Minister, in my electorate of Northern Metro Region proposed data centres have multiple applications with Greater Western Water seeking access to consume substantial amounts of water, including one for up to 3940 megalitres annually, equivalent to supplying 66,000 Victorians or all of Craigieburn. With the boom of hyperscale data centres, demands for water to cool servers to keep them operating safely and efficiently will increase. Minister, what is the Victorian government’s forecast of additional water demand from AI data centres over the next 10 years?

 Harriet SHING (Eastern Victoria – Minister for Ambulance Services, Minister for Health, Minister for Water) (14:06): Thank you, Ms Gray-Barberio, for that question on data centres. It is something that has come up on a number of occasions in this place before, and I do want to make it very clear at the outset that there are some really strict controls in place to protect existing water users and the environment. Whether it is data centres or primary production, the use of water within the system is something that is subject to a range of rules, standards and regulations, so before providing any approval water corporations need to be satisfied that water security, need and demand can be met without negatively impacting upon communities and other users.

The urban water strategies guidelines were released in December last year by the former water minister Ms Tierney, who did a power of work to engage with water corporations and with industry – and that includes data centres of course. This is about, again, the opportunities for supply, for example, of recycled water instead of drinking water wherever feasible. The technology around data centres is also something that continues to evolve, whether that is closed loop or whether that is a variety of different water sources. It is, again, about making sure that we are reducing the impact upon the water supply, particularly where water security is a priority.

The recently released Industry Water Connection Guide reiterates that really clear responsibility of non-residential users to prioritise the use of non-drinking water. To come back to the point that I made earlier, again, the former water minister has spoken to it in this place, and that guide is consistent with the national data centre expectations as well. That has been developed in consultation with industry. DEECA is also developing a statewide water forecast and adaptive framework, which is intended to manage future water use by data centres.

As has been made really clear, we do want to make sure that we are attracting the jobs that come with data centres in the same way that we attract business investment in a range of other sectors and industries, but we also want that to be balanced really carefully against the availability of water, particularly drinking water supplies. To ensure transparency for water usage, any non-residential water user that uses over 100 megalitres of water every year has to be publicly reporting that water usage and has to be able to be identified by a water conservation program. If there are any additional water needs required, then they need to be funded by the developer – so again, a user-pays system. We are continuing, through DEECA, to work with the water sector to make sure that existing water use policies for data centres remain fit for purpose.

In relation to the question that you have asked around forecasts, again that depends upon the planning, considerations and approvals that are given in respect of applications as they come forward, so to speculate on that and on future applications that might be made I suspect would not be as helpful to you as continuing to provide you with the information over time, which I am happy to do.

 Anasina GRAY-BARBERIO (Northern Metropolitan) (14:09): The Allan Labor government has positioned Victoria as the leading data hub in the Asia Pacific. With countries overseas identifying the growing pressure on water supplies as a result of data centre growth, such as the UK estimating a 5-billion-litre shortfall of water per day in the next 25 years, Victoria’s already stressed water systems need to be protected. Minister, what are the limits on how much drinking water data centres can use?

 Harriet SHING (Eastern Victoria – Minister for Ambulance Services, Minister for Health, Minister for Water) (14:09): Thank you, Ms Gray-Barberio, for that question. We are looking to attract as much investment as we can in a way that balances the availability and the drawdown of water from the system. Again, I would refer you back to my previous answer, which was about making sure that we are not having an impact that goes beyond that which is approved. As at April there are 35 applications being rigorously assessed by metropolitan water corporations. These applications are requesting a variety of different water amounts for the purposes of approval, but many of these applications will be supported by recycled water options. It comes down to the typology of each individual application – the type of water which is proposed to be used. Again, the guidelines do encourage the use of non-drinking water wherever possible, and that also includes consideration of closed loop. This is something we will continue to work on. I am very happy to continue to provide you with information.