Victorian councils call for a moratorium on new data centre approvals

Local government in the Australian state of Victoria has formally asked for a halt to new data centre approvals. The Municipal Association of Victoria (MAV), the peak body for all 79 councils in the state, passed a resolution at its October state council meeting calling for a moratorium on approving new or expanded data centres until a comprehensive planning and environmental framework is in place, ABC News reported on October 30, 2026. Neither ABC nor Bushletter gives a vote count.

What the councils want

A second motion asks for stronger regulation of the social, economic and environmental effects of data centres, including their use of land, energy and water. Eight councils brought data centre motions to the meeting, among them Melbourne, Geelong, Maribyrnong and Hume.

A central complaint is the state's Development Facilitation Program, which allows developers to lodge projects judged to be significant economic development directly with the planning minister. MAV president Jennifer Anderson said the process takes "powers away from council and community". In Geelong, the city council warned that large facilities could delay housing and industrial land needed for growth. ABC notes that NextDC bought 169 hectares at Lovely Banks, in the Northern Geelong Growth Area, on land earmarked for more than 2,000 homes.

Political responses

A government spokesperson pointed to rules announced in September that bar data centres near homes and schools and require renewable energy and non-drinking water; the spokesperson added that operators must bring their own energy supply. The Liberal and Nationals opposition says it would keep data centres out of residential areas and green wedges and place them in dedicated precincts. The Greens want a moratorium on all new AI data centres and compensation for affected communities.

Timing limits what can happen soon. The government enters caretaker mode the following Tuesday ahead of the November state election, and Anderson acknowledged there is little capacity to act before the vote; the MAV plans to lobby all elected officials afterwards.

A wider national debate

The resolution follows earlier calls. In September, four Victorian councils (Maribyrnong, Hume, Brimbank and Melton) told a federal Senate inquiry into AI and data centres that governments should pause development until national standards arrive, Information Age reported. The federal government has floated a mandatory minimum distance from homes and schools and plans national data centre rules for 2027, while the Senate inquiry is due to report on November 16. ABC's coverage cites no figures on how many data centres have been approved in Victoria.