Rising resentment grows over large datacentres emerging in Australian cities
Rising resentment grows among residents living near large datacentres being developed in Australian cities. These facilities, often described as “AI factories,” are expanding rapidly, raising concerns about their environmental impact and suitability in residential areas. Proponents argue that Australia must embrace the data boom to remain competitive, while local communities express frustration over noise, pollution, and planning decisions.
Concerns from residents near Melbourne’s M3 datacentre
In West Footscray, Melbourne, resident Sean Brown frequently walks past the M3 datacentre with his young child. The facility is promoted as “Australia’s largest hyperscale AI factory,” but Brown describes it as a source of constant construction noise, exhaust fumes from diesel generators, and a persistent background hum. He worries about the unknown cumulative environmental effects on his child’s health and development.
The M3 datacentre has already undergone several expansions and, if approved for further growth by the Victorian government, will double in size by the end of 2027. The site, less than 10 kilometres from Melbourne’s central business district, would cover 10 hectares and draw 225 megawatts of power continuously. Diesel generators on site are expected to increase from 40 to 100 units.
Brown criticises the location of the datacentre, calling it “a really inappropriate location for what is pretty much an intensive industrial building” situated close to homes. He acknowledges the need for datacentres but argues that the scale and speed of development have not been properly planned or assessed for community impact.
A spokesperson for NextDC, the company behind M3, stated that the project complies with local and state government regulations and that they have processes to manage community feedback. Meanwhile, the Maribyrnong local council opposes the expansion and awaits a decision from the Victorian planning minister.
Similar opposition in Sydney and Perth
In Sydney’s Lane Cove area, a proposal for a new 90MW datacentre called Project Mars is under government consideration. This would be the fourth datacentre in the area, which already occupies 40% of local industrial zones. The local council has raised concerns about the building’s height exceeding limits and its visual impact near bushland and residential zones.
Resident Daniel Bolger highlights the proximity of the proposed datacentre to Blackman Park, a major recreational area used by half the suburb’s population. He and others worry about the closeness of datacentres to schools and the large power consumption involved. The NSW planning minister encourages public submissions and assures that a full merit-based assessment, including energy needs, will be conducted before any approval.
In Hazelmere, near Perth, a planned 15,000 square metre datacentre with up to 120MW capacity faces growing community opposition. Local resident Kate Herren describes the project as “huge” and unsuitable for the location. Walter McGuire, chair of the Bibbul Ngarma Aboriginal Association, expresses concerns about the datacentre’s impact on the culturally significant Helena River and surrounding wetlands, emphasizing that such facilities belong in industrial zones, not near rivers and wetlands.
The City of Swan council has not commented publicly, while the developer, GreenSquareDC, states the site is in an established industrial area with major transport and power infrastructure. They acknowledge community interest due to proximity to businesses and a local school and commit to constructive engagement during the planning process.
Industry perspective and government response
Belinda Dennett, chief executive of Data Centres Australia, recognises that construction near residential areas can be challenging but maintains that developers comply with strict environmental and building standards. She highlights the economic benefits of datacentre investment, including new businesses and jobs, which she says will also benefit local communities.
Dennett told a New South Wales parliamentary inquiry that developing AI infrastructure domestically is crucial to maintaining Australian cultural values and legal control over technology. Without it, Australia risks becoming an importer of foreign technology lacking local oversight.
The Victorian planning minister’s office has stated that the M3 datacentre expansion proposal is under consideration but declined further comment. The NSW planning minister encourages public participation in the consultation process for new datacentre proposals.