Tuesday, 11 August 2026


Questions without notice and ministers statements

Data centres


Anasina GRAY-BARBERIO, Jaclyn SYMES

Data centres

 Anasina GRAY-BARBERIO (Northern Metropolitan) (13:54): (1404) My question is for the Minister for Environment. Minister, communities far north in the Northern Metro Region and in the west strongly oppose the Victorian Labor government’s lack of regulatory approach to the AI data centre boom, with 58 already operating in Victoria. It is clear the social licence around data centres has shifted. It is no longer about investment in digital infrastructure; concerns have moved towards extreme water use, wastewater burdens, high energy consumption, greenhouse gas emissions, air and water pollution, and cumulative impacts on communities. Minister, what specific assessments has the department of environment undertaken to understand the environmental impacts of large-scale data centre developments in Victoria and their proximity to residential areas?

 Jaclyn SYMES (Northern Victoria – Minister for Energy and Resources, Minister for Environment, Minister for Climate Action, Minister for the State Electricity Commission) (13:55): I thank Ms Gray-Barberio for her question. Obviously it is a matter of interest to her community. You have put your question to the Minister for Environment. Obviously there are lots of portfolios that intersect, and I think my portfolio of energy is also quite relevant.

At the outset I would acknowledge that data centres in themselves are great for creating long-term jobs. The construction of them creates thousands of jobs in the construction sector and high-end, skilled, high-wage jobs in our tech sector. They are strengthened by local supply chains and support additional indirect jobs and jobs across related industries. We certainly know that it is an investment opportunity for our state, but there is a conversation around how you can facilitate that investment and how you get the benefit of those jobs whilst you are also ensuring that they are in the right place and conscious of the impacts that they can have, whether they are environmental, energy or water, for example.

Importantly, the data centre industry themselves are backing renewables. They know that there is a requirement for social licence to be able to make those investments. Ms Gray-Barberio, Victoria has around 54 data centres at the moment. They use approximately 3 per cent of our power, and that is why in terms of going forward we certainly support and are working closely with the Commonwealth in relation to their policy about data centres bringing their own renewable electricity, and there is legislation in development in relation to that. We want requirements that it be cost-effective and efficient for industry, but helping secure an additional supply of cheap, reliable renewable energy into our grid is a benefit of some of those conversations.

When it comes to the location of data centres, the Minister for Planning has a greater role in relation to ensuring that all of the regulatory requirements and assessments that would be required for any development on Victorian land –

Members interjecting.

The PRESIDENT: Order! Ms Gray-Barberio is not interjecting yet. She wants to hear the answer.

Jaclyn SYMES: I am more than happy to discuss any individual projects and your concerns directly.

 Anasina GRAY-BARBERIO (Northern Metropolitan) (13:58): Minister, the Greens are calling for a moratorium on all new data centres so that regulation can catch up and necessary environmental assessments can be done. Will you commit to introducing stronger environmental accountability and rigorous safeguards to protect the environment and prevent the irreversible harms of data centre developments? Because, Minister, this is what the drinking water will look like if you continue to approve AI data centres. Right here: this is what is the future right now for communities.

Sonja Terpstra: On a point of order, President, Ms Gray-Barberio is holding up a prop, and it should not be allowed in the chamber.

The PRESIDENT: I will uphold the point of order and ask members to refrain from using props.

 Jaclyn SYMES (Northern Victoria – Minister for Energy and Resources, Minister for Environment, Minister for Climate Action, Minister for the State Electricity Commission) (13:59): In relation to the member’s concern, our existing planning controls ensure that data centres are sited on existing industrial land and that they pay for the upgrades to the grid. There are other concessions and conversations that have to take place. In relation to some of the matters that you have raised, Ms Gray-Barberio, those are obviously very much at the centre of the conversations we are having with the federal government and the guardrails that we are all working towards, which pick up on the concerns that you have raised, absolutely.