aceVictoria was ‘ruthless’ in its quest to become the datacentre capital of Australia. Why has it hit the brakes?
In the private dining room of Government House, Jacinta Allan was assiduously taking notes as waiters served a three-course meal made with local ingredients and accompanied by Victorian wines. Sitting around the table at the meeting in March were leaders of artificial intelligence companies and datacentres, hand picked by the governor’s office for a discussion about the future of the industry. The peak body for datacentres spoke about the investment opportunities presented by its members. Academic researchers an…
Fast-paced datacentre expansion close to homes, such as the M3 site in Footscray, generated community opposition that the government itself acknowledged as legitimate, forcing a policy reversal and raising investment-flight concerns.
Whether the new rules will drive investment out of Victoria is disputed. The industry body warns it could happen and the government says there is no evidence, so the economic effect remains unproven.
Evidence
- JournalismThe Guardian2026-09-26
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Truvace Impact Record TRV-2026-1556, v1: “Victoria was ‘ruthless’ in its quest to become the datacentre capital of Australia. Why has it hit the brakes?.” Truvace, 2026-10-16. /record/TRV-2026-1556 (accessed at citation time). sha256 4e5372113b3342cc…
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