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Melbourne data centre expansion sparks local opposition

by Retno Safitri
Melbourne data centre expansion sparks local opposition - data centre expansion
Dover DC’s 8.6-hectare expansion in South Morang, Melbourne, targets vacant rural land for a 72,392sqm facility.

Dover DC has revealed details of a new three-storey data centre planned for 165 Williamsons Road, South Morang, roughly 20km northeast of Melbourne’s central business district. The development, created by Ewert Leaf, will cover 8.6 hectares of vacant rural land and extend the SM1B expansion of the existing SM1A campus, which received approval in 2024 but has drawn local opposition.

The proposed 72,392-square-metre facility, including a 436-square-metre office, was submitted to the Victorian Department of Transport and Planning in August under the Development Facilitation Program (DFP). The site falls under an employment zone and borders the South Morang Terminal Station and AusNet’s electricity transmission centre, which Dover DC argues strengthens its suitability. An existing water supply easement further limits other potential uses.

This project aligns with rising demand for data storage, fueled by growing dependence on AI and information technology, the company’s planning documents state. The South Morang campus sits near another approved Dover DC data centre complex at 525 and 535 McDonalds Road and 765 Plenty Road, which was cleared last year despite objections from the City of Whittlesea Council. The council has repeatedly pushed for tighter state and federal oversight, accusing planners of insufficient transparency and community involvement, particularly through the DFP process.

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The council’s August discussions revealed deeper dissatisfaction with how data centre projects bypass standard planning rules. Residents have already challenged Dover DC’s earlier South Morang initiatives, reflecting national discussions about the infrastructure and environmental effects of such facilities. While the company insists its pre-planning phase included extensive discussions with authorities and stakeholders, the council remains unconvinced, demanding clearer guidelines.

Proposed national regulations for data centres are anticipated in early 2027, potentially resolving some planning disputes. Until then, developments like SM1B will face ongoing local pushback while proceeding through accelerated state approvals. Dover DC insists it prioritizes sustainable development and reducing community effects, but the Whittlesea Council’s position signals further disagreements ahead.

The council’s frustration stems from repeated conflicts over data centre expansions, where state-led processes often override local input. Despite the company’s claims of thorough engagement, critics argue the DFP pathway consistently sidelines community feedback. The upcoming national framework may force greater consistency, but until its implementation, disputes over data centre projects will likely persist.

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