Port Phillip calls for smarter planning of AI and data centres
The City of Port Phillip has made a submission to the Senate Inquiry into Artificial Intelligence and Data Centres, calling for stronger national governance, improved planning frameworks and greater transparency to ensure the growth of AI-related infrastructure aligns with community, environmental and infrastructure needs.
Artificial intelligence and data centres are becoming increasingly important to Australia's digital economy, supporting essential services, innovation and emerging technologies. Council's submission argues that current regulatory and planning frameworks are not keeping pace with the speed and scale of industry growth.
The submission highlights the need for nationally consistent standards that protect community interests while supporting investment and technological advancement.
Why Council made a submission
As a densely populated inner-city municipality, the City of Port Phillip is focused on ensuring major infrastructure decisions properly consider their impacts on communities, water resources, energy networks and the environment.
Council's submission notes that demand for data centres is expected to increase significantly as the use of AI continues to grow. Stronger coordination is needed to ensure this growth is managed responsibly, sustainably and transparently.
Key concerns
The submission identifies several areas where existing arrangements could be strengthened, including:
- Fragmented planning, energy, water and environmental responsibilities across multiple agencies.
- Limited consideration of overall and cross-boundary impacts on infrastructure and communities.
- Fast-track planning pathways that can reduce opportunities for local government and community input.
- Increasing pressure on electricity networks, water resources and local amenity.
- A lack of transparency regarding environmental performance and resource consumption.
Council also highlighted the importance of recognising local government as both a user of data centre-enabled services and a representative of communities affected by major infrastructure decisions.
What Council is advocating for
The submission makes 20 recommendations to the Inquiry, including:
- Nationally consistent planning and sustainability principles for data centres.
- Mandatory consultation with host and affected councils.
- Cross-boundary notification and infrastructure impact assessments.
- Stronger requirements for renewable energy, energy efficiency and emissions reduction.
- Water sustainability requirements that prioritise recycled and non-potable water sources.
- Greater transparency and public reporting on energy, water and environmental performance.
- Stronger accountability measures to ensure commitments made during approvals are delivered.
Council is also advocating for strategic planning to identify appropriate locations for future data centre development, ensuring these facilities are located where they can balance infrastructure capacity, environmental considerations, housing supply and broader economic outcomes.
Looking ahead
Artificial intelligence and digital infrastructure will play an important role in Australia's future. Council's submission argues that with stronger governance, transparent decision-making and better coordination across all levels of government, Australia can support investment in AI and data centres while protecting community interests, infrastructure resilience and environmental sustainability.