Kapitol is building NextDC’s first data centre in Geelong at an O’Briens Rd, Corio site. The 4.4MW facility expected to be operational in 2027. Picture Mark Wilson
The largest property developer in Geelong’s northern growth corridor is calling for assurances that community and amenity concerns are mitigated after Australian data centre giant NextDC acquired a large landholding in Lovely Banks.
Records show NextDC has acquired 169ha of farmland in Lovely Banks.
The properties, on Robbs and Evans roads, are in an ideal location for an energy-hungry data centre, set under high-voltage powerlines and close to the Moorabool Terminal Station on Anakie Rd.
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Victoria’s Big Battery project, a 300MW grid-scale battery storage project operated by HMC Capital, is also nearby.
HMC Capital has also won a federal government tender to add 300MW capacity to its Moorabool big battery.
The properties reportedly sold for $165m. Records show the Evans Rd properties sold for more than $107m.
The NextDC landholding straddles the western boundary of Geelong’s northern growth corridor, and potentially can provide more than 2000 new homes.
High voltage power lines dissect the Lovely Banks properties.
It is also adjacent to Westbourne Grammar School’s future Lovely Banks campus.
“It’s in the middle of the growth area,” Newland Developments general manager Mark Whinfield said.
“50ha is in the rural zoning and 120ha is in the future growth area, which is proposed for residential.
“Clearly it’s not in keeping with what this envisioned in the growth area.”
Newland Developments is the lead developer for the Lovely Banks Development Group, which is led by Costa Asset Management and controls the largest landholding in the future suburb.
The Lovely Banks development is a 15,000-lot masterplanned community.
“We need to try and ensure that there will be some consultation on this so that any community considerations are ameliorated, mitigated,” Mr Whinfield said.
The Lovely Banks landholding lies to the north of the Victorian Big Battery and Moorabool Terminal Station, near Geelong. Picture: Alan Barber
“But it also rips out some 2000 to 3000 homes out of the whole growth area, which then impacts on transport, community facilities, retail, so it would be a huge impact that needs to be considered.
“There’s many considerations,” he said. “We know that the government want them (data centres), and that they’ll do anything to get them, but I think that in a growth area that’s been planned for the past 15 years it really needs to be transparent in consultation.
“They’re going to be a neighbour so we’d call on them to be good corporate citizen and do the right thing.”
City of Greater Geelong chief executive officer Ali Wastie said the council has growing concerns about data centre proposals in Geelong, particularly in an area earmarked for housing.
“While council is not the planning authority for the data centre applications, we are engaged as a referral authority and are increasingly concerned about the implications of these developments for planned residential outcomes,” Ms Wastie said.
Kapitol is building NextDC’s GE-1 data centre in O’Briens Rd, Corio, with the 4.4MW facility expected to be operational in the second half of 2027. Picture Mark Wilson
“We welcome investment in data centres where they support future industries, digital innovation and technology jobs.
“However, they need to be planned strategically and located in the right places, with a clear understanding of what they may compete with, particularly land needed for housing, employment, community infrastructure and other essential urban growth.”
“It’s also important to consider how they may impact our future energy and water services.”
Ms Wastie said of particular concern is the recent land sale within a future residential precinct structure plan (PSP) area.
“This land is identified for future housing, and large-scale data centre use is likely to undermine the extensive strategic planning work completed to date and compromise our ability to meet Geelong’s long-term housing needs,” she said.
“Future residential PSPs are expected to play a key role in delivering Plan for Victoria’s housing target for Greater Geelong of 128,600 new homes.
Ali Wastie, the CEO of the City of Greater Geelong said the council has growing concerns about data centres, particularly those in areas earmarked for housing.. Picture: David Crosling
“That’s why we’re calling for a co-ordinated, state-led approach to data centre development to make sure it aligns with our strategic plans and urgent housing needs,” she said.
The City has not met with NextDC regarding the land purchased in Lovely Banks and data centre applications go through the development facilitation process.
Ms Wastie said she contacted the Municipal Association of Victoria’s CEO last week, appealing for support in advocating for a clear framework to provide councils with strategic direction, technical guidance and policy certainty required to manage and assess these proposals.
“Our aim is to better understand this growing industry and how the city can balance supporting data centre proposals with achieving our housing targets and creating attractive future communities,” she said.
It would be Geelong’s second data centre after NextDC contracted Kapitol to build its 4.4MW complex in O’Briens Rd, Corio, having paid more than $16m for the 4ha site in 2024.
A fast-tracked permit was granted last year via the state government’s development facilitation program.
Stage one of the project – known as GE1 – is expected to be completed in 2027.
NextDC has been contacted for comment.
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