Sustainable Data Centre Action Plan
What is the Sustainable Data Centre Action Plan?
Data centres are critical infrastructure. They underpin the digital services Victorian businesses, communities and governments rely on every day – from internet connectivity and cloud services to essential systems such as emergency response, transport, healthcare and banking.
As Victoria’s data centre footprint grows, we want to make sure this growth is well planned, efficient and responsible. The Sustainable Data Centre Action Plan sets out how we will achieve this through a coordinated, whole-of-government approach to investment, planning and workforce development.
With support from different government departments, the action plan addresses 5 key areas to sustainably grow the sector, from information on land availability and planning, to sustainable energy and water provision, and the skilled workforce needed for the future.
The action plan will strengthen Victoria’s position as a global investment destination for data centres. This has the potential to deliver a pipeline of projects worth more than $25 billion.
Why is Victoria the right place for data centre investment?
Victoria is emerging as a leading data centre hub in the Asia Pacific.
Leading global companies are choosing Victoria because of our competitive energy market, available industrial land, highly skilled workforce and culture of innovation.
This supports Victoria’s digital tech sector which is the fastest growing in the nation. In Victoria alone, more than 306,000 people work in tech roles – around 30% of Australia’s tech workforce – and the sector contributes more than $36 billion to the state’s economy.
This positions Victoria to lead the next wave of digital, tech and AI-driven growth.
For more information or investment assistance, visit the Invest Victoria website.
How will the action plan benefit Victorians?
The action plan will attract investment, foster innovation, lift productivity and create high-value, skilled jobs. Victoria’s growing data centre sector will drive economic growth across the state, creating opportunities for workers, businesses and industries.
The action plan will also support the development of a skilled local workforce, ensuring these jobs are created in Victoria and stay in Victoria.
Developing more data centres will make the digital services all Victorians rely on faster, more secure and more reliable.
How will the action plan work?
The action plan is primarily an internal coordination framework to improve how government works together. It will allow government to better plan, coordinate and support data centre investment in Victoria – giving industry certainty and communities confidence. It will ensure growth is well-managed, efficient and sustainable.
The action plan is a key initiative under the Victorian Government’s AI Mission Statement, which is a vision for the state to develop and adopt AI safely, responsibly and for the benefit of all Victorians.
The action plan focuses our efforts across 5 key areas:
Improve access to data – land, energy, water and transport infrastructure availability – for businesses and potential investors to provide greater certainty on project timelines and approvals.
Power data centres sustainably and integrate them smoothly into the energy system, while maintaining energy reliability and security for all Victorians.
Establish a proactive, system-wide approach to managing water demand for data centres, supporting sustainable sector growth while safeguarding water security for the broader community.
Partner with TAFEs and tertiary providers to build a pipeline of skilled workers to meet the sector’s specialised needs across construction, operations and digital roles.
Improve coordination across departments and agencies, demonstrating clear government leadership and promoting Victoria’s global reputation as a premier investment destination.
Who’s delivering the action plan?
The action plan is a whole-of-government framework, led by the Department of Jobs, Skills, Industry and Regions (DJSIR), with support from:
- The Department of Energy, Environment and Climate Action (DEECA)
- The Department of Transport and Planning (DTP)
- The Department of Government Services (DGS)
For help with investment opportunities, visit data centres on the Invest Victoria website.
Page last updated: 6 March 2026