05/08/2026
Socialist Alliance opposes the rapid expansion of Artificial Intelligence (AI ) data centres being pushed by the Victorian state Labor government.
Socialist Alliance supports calls by grassroots groups for a moratorium on new approvals and the construction of new data centres until enforceable community and environmental safeguards are legislated.
The push to rapidly build AI data centres all over Australia is being pushed by big tech corporations who want to make massive profits at the expense of the environment and communities.
The expansion of mega data centres in Australia is mostly unregulated. State governments are competing to attract more mega data centres to their states with the offer of subsidies and fast-tracking approvals.
The Victorian government is fast-tracking data centre applications in the hope of becoming the data centre capital of Australia. That is why there is an avalanche of data centre applications in Victoria.
Environmental experts have raised the alarm that the rapid expansion of AI Data Centres threatens to derail the renewable energy transitions. There is major concern that Victoria's electricity supply won't be able to cope with all the proposed mega data centres if they all get built.
That is because AI Data Centres use enormous amounts of energy as they require constant power and cooling.
There are valid concerns that the data centres will destabilise local electricity supplies causing electricity outages which can have terrible impacts on people who rely on medical equipment which needs continuous electricity supply.
The drain on the energy system is likely to result in an increase in electricity prices, just as the amount of renewable energy in the system is starting to reduce electricity prices.
Their excessive water usage for cooling is an area of concern with one report estimating that AI data centres use billions of litres of water a year.
Fire Rescue Victoria has raised concerns about the influx of mega data centres in Melbourne because of the significant volumes of diesel and lithium-ion batteries on the sites.
The concerns are about the data centre's complex fire risk, especially the risk of thermal runaway, a phenomenon where lithium-ion batteries undergo an uncontrollable chemical reaction that produces significant amounts of heat, resulting in the release of highly toxic fumes and an intense, self-sustaining fire.
Over 30 mega data centre construction projects have been proposed in the state of Victoria.
These data centres are disproportionately being planned for outer suburban working class areas with large migrant populations whose voices are often silenced by politicians and corporations alike.
Many industrial sites where mega data centres are proposed are next to residential areas.
The mega data centres are being fast-tracking by the state government so that communities don't have the time to understand the proposals and understand the implications of living beside a data centre. Residents in these affected areas have raised concerns about the potential for high levels of noise pollution 24 hours a day, seven days a week, and the lack of community consultation.
The rapid expansion of data centres is being driven by corporations' massive investment in AI where capitalists are projecting to make massive profits within the industry.
The new mega AI data centres are predominantly used for AI training and workloads and aren’t necessary for the internet services we use on a daily basis.
Corporations are also using the technology to implement mass surveillance and sack workers through the elimination of entry level jobs. The benefits of work-saving technologies must be shared and not just turned into more profit for the corporate rich.
AI like Data Centres is being pushed onto workplaces without a nationwide discussion about regulations or protections to safeguard jobs for workers and community services.
Socialist Alliance calls for:
An immediate moratorium on new approvals and the construction of new data centres until enforceable and strong safeguards are legislated for people, the community, cultural heritage and the environment.
A public inquiry to properly investigate the implications of the mega data centre industry before a moratorium is lifted and in order to inform the sorts of safeguards needed by the community and the environment. The inquiry needs to be easily accessible for the communities that are being impacted by data centres.
Binding legislated standards for AI development, including substantiated claims of additional renewable energy
Full disclosure of services delivered, emissions, finances and energy use, per project.
Full assessment of compliance with human rights frameworks.
Regulations on the use of AI to protect workers, artists and our data.
A shorter working week, with no loss in pay, to stop AI being used to eliminate jobs.
[This statement was adopted by the Victorian branches of Socialist Alliance on August 1]
