Community Opposition Grows as Australia’s AI Datacentres Expand

The M3 AI datacentre in West Footscray, Melbourne, will double to 10 ha by end-2027, drawing 225 MW and expanding generators from 40 to 100. Project Mars (90 MW) near Lane Cove, NSW, and a 120 MW, 15,000 sqm Hazelmere facility are pending approval.

The Guardian

National pressure to secure AI-ready infrastructure has accelerated investment in computing. Policymakers argue domestic datacentres protect data sovereignty and generate jobs, while industry bodies claim the sector meets environmental and building standards.

The Guardian

Residents Sean Brown (West Footscray), Daniel Bolger (Lane Cove) and Kate Herren (Hazelmere) oppose the projects. Developers are NextDC (M3), Goodman Group (Project Mars) and GreenSquareDC (Hazelmere). Data Centres Australia CEO Belinda Dennett represents the sector; Sonia Kilkenny (VIC) and Paul Scully (NSW) review approvals.

The Guardian

M3 will occupy 10 ha, consume 225 MW and include up to 100 generators. Project Mars would cover 22,000 sqm and draw 90 MW. Hazelmere’s plan calls for a 15,000 sqm building with a 120 MW peak, adjacent to Helena River.

The Guardian

Residents say datacentres sit beside homes, schools and parks, producing noise and exhaust. Brown warns his child grows “in the shadow of a facility whose cumulative environmental impact … has never been assessed.” Bolger notes proximity to Blackman Park and schools; McGuire warns of grave risks to Helena River and wetlands.

The Guardian

NextDC says M3 project complies with regulations and includes a feedback process; a Victorian planning office confirmed expansion is under review. NSW planning minister Paul Scully urged participation and pledged an energy assessment. Data Centres Australia’s chief executive said developers meet standards and benefits will reach communities, and warned that without domestic AI infrastructure Australia would become an importer of foreign technology lacking Australian values.

The Guardian

• “He is growing – neurologically, pulmonarily, physically – in the shadow of a facility whose cumulative environmental impact … has never been assessed,” — Sean Brown, West Footscray resident

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• “We’re building Australia’s largest hyperscale AI factory purpose-built for the new AI era of accelerated computing,” — Craig Scroggie, CEO, NextDC

The Guardian

• “This is how we build Australia’s digital future: speed, scale, sovereign, sustainable & secure.” — Craig Scroggie, CEO, NextDC

The Guardian

No released cumulative environmental impact assessment exists for M3, despite resident demands. While developers cite compliance with standards, local councils and community groups claim zoning decisions did not anticipate the scale of current expansions. Final planning outcomes remain in Victoria and New South Wales.

The Guardian

Victorian government is expected to rule on M3 expansion by late 2027; NSW will conclude an energy assessment of Project Mars in the coming months. A parliamentary inquiry into sector continues, and community groups have pledged protests if approvals proceed without additional safeguards.

The Guardian