MEDIA RELEASE | 24 September 2026
Outer Melbourne Councils (OMC) has welcomed key elements of the Victorian Government’s Sustainable Data Centre Action Plan, saying stronger safeguards on energy, water, siting and local investment are a positive step for growth communities.
OMC said data centres are important infrastructure, but must be planned properly, located carefully and deliver clear benefits for host communities.
“Outer Melbourne is not opposed to data centres — but they must be in the right places, on the right terms, with the right safeguards,” said Cr Naomi Joiner, Acting Chair of OMC.
Outer suburban councils are seeing strong interest from data centre proponents in areas with major industrial land and fast-growing communities nearby.
These projects can place major demands on land, power, water, roads and council resources, while often creating fewer ongoing local jobs than other employment uses.
“Councils must be involved early — before sites are selected, fast-track pathways are triggered and communities are left reacting to decisions already well advanced,” Cr Joiner said.
OMC said the plan needs clear rules on energy and water demand, infrastructure, traffic, noise, heat, emergency management and community benefit. It is also seeking protections for valuable environmental, green wedge and agricultural land, with similar requirements for Battery Energy Storage System proposals.
OMC said the Local Investment Guarantee must be developed with councils and host communities so benefits are meaningful, locally directed and enforceable.
“Community benefit cannot be a vague promise. It should mean local jobs, skills, infrastructure, open space, energy resilience or environmental improvements,” Cr Joiner said.
“Data centres should pay their way. Network upgrades, road works, planning, compliance and engagement costs should not be shifted onto councils, households or small businesses.”
OMC will seek further engagement with the Victorian Government on final rules, including council involvement in site selection, permit conditions, strategic employment land and long-term local benefits.
“The Action Plan is a constructive start. The test now is whether it gives councils a real role, manages local impacts and leaves a positive legacy,” Cr Joiner said.