The Municipal Association of Victoria (MAV) and Council Alliance for a Sustainable Built Environment (CASBE) are calling for transparent decision making, strong environment standards and better outcomes for data centre host communities in its joint submission to the state’s Senate Inquiry into Artificial Intelligence and Data Centres.
MAV President, Jennifer Anderson said that while data centres represent enormous national‑scale opportunity for the digital economy, they also create significant, concentrated impacts for the communities that host them.
She says councils are seeking a more balanced and community‑centred approach to the rapid growth of AI infrastructure.
“Data centres have such a large infrastructure, energy and water footprint, it is imperative that we get the planning for them right in the first place.”
“Communities that host them must have a say and should be provided with financial benefits to offset any impacts from hosting them.
“Our joint submission details how Victoria’s existing planning framework for data centres and associated infrastructure has significant gaps the leave communities exposed to unacceptable environment and amenity outcomes,” said President Anderson.
MAV & CASBE say local government sits at the frontline of the social, environmental and infrastructure impacts caused by the rapid construction of data centres and their associated infrastructure across Victoria, required by the rapid up-take of AI.
They have called for effective and strong leadership from the Victorian Government through its forthcoming Sustainable Data Centre Action Plan, including:
- Mandatory sustainability standards for water and energy use;
- Decision-making frameworks that build trust and are transparent;
- Benefit sharing for host communities;
- Coordinated infrastructure delivery.
As convenor of the National AI Working Group for Local Government, MAV emphasised that artificial intelligence is not simply a technology issue, but also an emerging strategic capability that will shape how councils deliver services, make decisions, engage communities, manage risk and build future‑ready organisations.
“We will continue to advocate on behalf of Victorian communities to both the federal government and through MAV’s Regenerative Futures agenda ahead of the state election,” said President Anderson.
View the full submission:Â Sector Submission – Senate Inquiry into Artificial Intelligence and Data Centres.
