Greens & community pressure wins: Labor scrambles to rein in the data centres they desperately courted

2026-09-24

The Victorian Greens have welcomed Labor’s major retreat on its data centre free-for-all, after sustained pressure from communities and the Greens forced the Government to announce new restrictions on where data centres can be built.

After spending the last year rolling out the red carpet for big tech, fast-tracking data centres and voting down the Greens’ moratorium on new data centres, Labor has finally conceded these enormous industrial facilities should not be dumped next to people’s homes.

But the Greens say more details need to be released, including the evidence supporting 150 metres buffer zones. They are also calling for residents already living next to data centres to compensated, and projects currently in the pipeline to be stopped.

Victorian Greens spokesperson for AI and data centres Sarah Mansfield said:

“This is a huge win for communities who have fought tooth and nail against Labor’s data centre free-for-all.

“Labor has finally admitted these giant industrial facilities don’t belong next to people’s homes. But we need to see more details. 150 metres is incredibly close - datecentre noise, including low-frequency hum from cooling systems, can be experienced well beyond that distance.

“Labor needs to show us the evidence for 150 metres and release the acoustic modelling and health and environmental advice behind it.

“There’s also a glaring hole in this announcement: what happens to the people already living next to these massive data centres?

“Labor can’t admit these facilities need a buffer and then abandon the residents already living inside it. Big tech should pay to compensate those communities.

“The timing of this backflip says it all. Labor spent the last year trying to turn Victoria into the data centre capital, fast-tracking projects and voting down our moratorium.
Now, weeks out from an election and just two days after the Greens led day of action in Footscray supported by hundreds of local community members, they’re scrambling to contain the political mess they created.

“While this announcement is welcome, Labor still can’t be trusted to stand up to big tech. Victorian Labor have been forced to try to rein in data centres weeks out from an election to save their seats, but federal Labor is still courting the same global AI giants and considering copyright changes that have alarmed Australian creators.

“The problem is Labor’s fundamental position hasn’t changed. They still want more data centres, they’re still competing to attract global tech giants, and they’re still treating massive growth in this industry as something to celebrate.

“The Greens have stood with communities from the start, and we’ll keep fighting for stronger protections, compensation for residents and an end to the data centre free-for-all.”