A$1.1B Melbourne Data Centre Faces Resident Backlash Over Power, Noise
Synopsis
Singapore-based Zerra DC's proposed 210,000-square-metre data centre campus in Campbellfield has sparked resident opposition over noise, environmental impacts and electricity demand, with the facility expected to consume 336MW when fully operational.
A proposed Melbourne data centre with a predicted spend of A_$$1.1 billion campus, which will occupy 210,000 square metres over six stages and 12 years.
The project is separate to the other A$$1.1 billion at the site of the former Ford factory at Campbellfield has drawn down opposition from residents, with concerns about electricity demand, noise, ecology and jobs dominating the debate.
Singapore-based Zerra Data Centres Pty Ltd has applied to the Victorian government for approval to fund the scheme, which would see the creation of a major data centre at a brownfield site in Clyde North, southeast of Melbourne.
Campbellfield Residents Challenge Project
The Melbourne data centre would use 336 megawatts(MW) when fully constructed, with the first phase taking 28 months to finish and finishing in the second quarter of 2028.
Over 1000 people signed a petition objecting to the proposal. The location, just 260m from where houses stand means noise from the worksite is amplified and the impact on the community heightened.
The construction and operation would support 255 full-time-equivalent jobs, with part-time workers able to be hired to fill additional capacity, while just under 50 roles are estimated to be available in the first phase. The former car manufacturing plant was capable of employing 5000 workers at the height of production in the 1980s.
Local Member for Lilydale, Labor Senator Kathleen Matthews-Ward, has also expressed concerns about the project and called for further community consultation.
Data Centre Demand Puts Power Use in Focus
The Melbourne data centre development fits in with a national trend towards data storage facilities, which are set to intensify Australia’s electricity demand.
According to the Australian Energy Market Operator’s (AEMO) 2026 Integrated System Plan , it is estimated that data centres could account for nearly 10% of the total underlying demand in the National Electricity Market (NEM) in the AEMO’s Step Change scenario by 2050.
In its previous Integrated System Plan, released in 2025, AEMO estimated that consumption for data centres would be 12 terawatt-hours (TWh) in 2030 and 34 TWh in 2050, compared to about 7.8 TWh in 2024.
This fits with a global trend, with electricity demand from data centres set to surge, the International Energy Agency (IEA) predicting that global data centre electricity consumption would total 945 TWh in 2030, more than double the 2024 figure.
The trends highlight the importance for companies in Australia and the US, where many data centres are located, to consider the implications of big tech data centre developments for their electricity and infrastructure requirements.
Source: InformationAGE
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
