The loss of residential-allocated land to a potential data centre could provide a financial hit to how vital infrastructure is funded in Geelong’s northern growth corridor, the state’s home building lobby has warned.
Housing Industry Association Victoria deputy executive director Steven Wojtkiw said shortages of shovel-ready land, planning delays and rising building material costs are already combining to seriously constrict housing supply.
“The rapid expansion of data centres – often on land previously earmarked for housing – threatens to exacerbate this situation and must be reassessed,” Mr Wojtkiw said.
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Planning Minister Sonya Kilkenny said any application for a data centre at Lovely Banks would undergo a rigorous approvals process. Picture: Nicole Cleary
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Australian data centre giant NextDC has acquired a 170ha landholding in Lovely Banks where 120ha is earmarked for residential use.
“The recent purchase of 170ha of residential-allocated land northwest of Geelong by data centre operator NextDC provides a case study of what is at stake,” Mr Wojtkiw said. “Conversion of this land to a non-residential use will remove some 2000 homes from potential development.
“This may result in the loss of development infrastructure contributions that would otherwise be paid by developers if the land was used for residential housing.”
His comments come after Newland Developers general manager Mark Whinfield said taking 2000 homes out of the growth area also impacts plans for transport, community facilities and retail areas in a new suburb.
Mr Wojtkiw said while data centres can make an important contribution to diversifying the state’s economy, their growth must not be at the expense of one of the most fundamental necessities of life: a home.
HIA Victorian deputy executive director Steven Wojtkiw said the state government’s planning fast-track should be used sparingly for data centre projects.
“Builders want to build homes and Victorians need more homes built. The growth of large-scale data centres must not be allowed to continue unchecked.”
Mr Wojtkiw said in Victoria there are more than 30 data centre projects already operating and a similar number in the pipeline.
Victorian Planning Minister Sonya Kilkenny said a potential data centre application for the Lovely Banks site would be put through a rigorous planning process.
Ms Kilkenny said there was no planning application.
“More generally in relation to data centres, they are required to go through a rigorous planning approval process and that means being sure that it complies with the local council planning scheme,” she said.
“That it is taken to referral agencies that matters around energy and water usage and environmental issues, site context, all taken into account.
High voltage power lines dissect the Lovely Banks property acquired by NextDC.
“These are rigorous planning approvals that they must step through in order to obtain that approval.”
Ms Kilkenny said it was also worth recognising that data centres are a critical infrastructure for this state.
“It is an absolutely critical component of every service that is delivered here in Victoria, across Australia, and indeed across the world. As for planning of data centres, like every other planning application, they will go through a rigorous planning application process.”
But Mr Wojtkiw said the rapid expansion of several large-scale data centre projects suggests some projects may be expecting to take advantage of the state government’s Development Facilitation Program (DFP) which fast-tracks planning consideration for projects with construction costs worth at least $50 million.
“The DFP process should be used sparingly, not as a way to sidestep deep and wide consultation around significant land use projects that have long-term implications for Victorian communities, and other industries like agribusiness, transport, retail and tourism,” he said.
“Apart from their large land use footprint, data centres place huge demands on power and water supplies, effectively competing for these scare resources and their alternative use.
City of Greater Geelong chief executive officer Ali Wastie said losing the land to a potential data centre would compromise the city’s ability to meet Geelong’s long-term housing needs.
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