Melbourne Mayor Warns AI Data Centers Could Overheat the Planet
Melbourne’s Lord Mayor has underscored the urgent need for governments to manage the environmental impacts of data centers. He described the rise in data centers as a pivotal development for energy systems, comparable to the introduction of air conditioning in the 1950s.
Data Centre Water Usage in Melbourne
Recent documents reveal that Greater Western Water is assessing 19 applications from data centers that collectively seek to use 20 gigalitres of water annually. This amount mirrors the water consumption of approximately 330,000 Melburnians last year.
In a recent City of Melbourne council meeting, members voted unanimously to investigate the responsible utilization of artificial intelligence infrastructure and data centers. The motion, introduced by Councilor Nicholas Reece, emphasized the need for regulatory frameworks to monitor water and energy consumption as well as greenhouse gas emissions.
Concerns Over Energy Consumption
- The Australian Energy Market Operator anticipates that by 2050, data centers could account for 19% of Melbourne’s electricity grid usage.
- This figure is a stark increase from only 2% in 2025.
Mr. Reece pointed out that the current monitoring and regulatory systems are inadequate. He stated, “We need to ensure proper oversight regarding energy and water systems.” The existing demand for data centers continues to rise due to the cloud computing and artificial intelligence boom.
State Initiatives for Sustainable Data Centre Development
The Victorian government is striving to position the state as a leader in ethical AI. Recently, they released an “AI Mission Statement” and invested $5.5 million into developing a Sustainable Data Centre Action Plan. Premier Jacinta Allan has expressed her ambition for Victoria to attract more data centers, reiterating its potential advantages.
- Victoria’s projected capital expenditure for upcoming data center projects may reach $25 billion.
While the Lord Mayor acknowledges the economic benefits of data centers, he insists on the necessity of responsible planning. He emphasizes the importance of using renewable energy and developing sustainable water management practices.
Community Concerns and Local Council Actions
Melbourne currently hosts around 20 data centers. Recently, a $2 billion digital hub by NextDC gained ministerial approval, prompting calls for more thorough examinations of resource-intensive applications.
Deputy Lord Mayor Roshena Campbell criticized the state’s quick approvals, highlighting the lack of comprehensive sustainability guidelines for new data centers. Hume Council, another local authority, previously voted to create a framework for evaluating data center applications to ensure sustainable resource use.
As concerns about data center resource needs grow, local councils are increasingly vocal about their impacts on housing and community development.
