The southeastern Australian state of Victoria has proposed new rules requiring data centers in the region to secure a renewable energy supply for their operations, among several other requirements.

The proposal is part of the state's 'Sustainable Data Centre Action Plan,' and sets out a range of new requirements that data centers must adhere to if they want to build in the region.

Under the proposal, data centers will be required to bring their own renewable energy supply and storage, match new demand with new generation, and cover connection and network upgrade costs. The rules, in effect, seek to make data centers net generators to the grid rather than net users.

It will also require data centers to use recycled or non-drinking water for cooling. If they are unable to do so immediately, they will be required to offset the water they do use and pay for the infrastructure upgrades needed.

The new rules will additionally prohibit data centers from being sited in residential areas, such as near schools and childcare centers, as well as in rural areas unable to support them. It will also create a clear buffer zone for new data centers, which will be 150 meters (492 feet) between the building and any residential areas. Furthermore, data centers will be required to have a responsible traffic management plan during construction and operation.

Finally, the rules have several community-focused provisions. These include providing a local investment guarantee wherever they site their facilities. These local benefits, subject to consultation, could include jobs, TAFEs, parks, and more. Operators will also be required to support training for people living in the state, and prioritize hiring in the region over bringing in outside talent.

Commenting on the new rules, the Victorian premier said: “In Victoria, we set the rules – data centers must power themselves, protect homes and pay their way.

“If we get that right, we can all share in their economic benefits, especially the local community.”

The proposal is the latest to emerge in Australia seeking to push data center operators to deploy more renewable capacity on the local grid. Last month, New South Wales set out a proposal that would require data centers to source at least 40 percent of their energy requirements from wind.

The federal government also floated plans for new rules that would have required data centers to power a portion of their installations with renewable energy. However, the federal government nixed the renewable energy mandate following objections from two regions.

One of the objectors, Queensland premier David Crisafulli, said that such a mandate should be the decision of state officials, as they own the whole power system that serves them.