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Victorian Minister Rejects NextDC’s Lobbying Push for Footscray AI Data Centre

The company is seeking approval for a 10-hectare, 225MW facility near homes. The dispute now tests how quickly major AI infrastructure should move through Victoria’s planning system.

By 2 min read
Victorian Minister Rejects NextDC’s Lobbying Push for Footscray AI Data Centre
Victorian Minister Rejects NextDC’s Lobbying Push for Footscray AI Data Centre

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Victoria’s jobs minister has refused to back NextDC’s push to expand its M3 data centre in Footscray, after the company’s chief executive asked her to intervene in the planning process. Melissa Horne said she did not consider it appropriate to support the application. She also alleged that Craig Scroggie used artificial intelligence to draft his email, and that it contained basic factual errors. NextDC and Scroggie did not respond to that allegation when contacted. The project would add a ten-hectare facility drawing 225 megawatts continuously—effectively a large, always-on load on local power and infrastructure. It would sit beside an established residential area, with some homes as close as 15 metres from the boundary. Residents have raised concerns about the site’s community and environmental effects, including diesel generators running during outages and routine testing. Labor MP Katie Hall, whose electorate includes M3, has opposed the expansion. The application is eligible for Victoria’s fast-tracked planning route. That matters because if the planning minister approves or rejects it, opponents cannot appeal the decision to the Victorian Civil and Administrative Tribunal, or VCAT. Horne’s refusal is politically significant, but it does not decide the project. NextDC later hired Ken McAlpine, a former adviser to the Brumby and Bracks Labor governments, to lobby the state instead. The key constraint now is that the planning minister remains the final decision-maker, with a major hyperscale facility still facing local resistance.

Story brief

3 key points

NextDC’s proposed Footscray M3 expansion faces a public political setback after Victorian jobs minister Melissa Horne refused CEO Craig Scroggie’s request to intervene in the approval process. The project would add a 10-hectare, always-on facility drawing 225MW beside homes as close as 15 metres away. Approval is fast-tracked, and a planning-minister decision cannot be appealed to VCAT. NextDC later hired former...

  1. 01

    The proposed facility would consume 225MW continuously, highlighting the local grid and infrastructure implications of hyperscale AI capacity.

  2. 02

    Horne alleged Scroggie used AI to draft his lobbying email and that it contained basic factual errors; NextDC did not respond.

  3. 03

    Residents cite diesel-generator operation during outages and routine testing as concerns about the site’s community impact.

NextDC’s request for political backing for its Footscray data-centre expansion has drawn a blunt refusal from Victoria’s jobs minister. Melissa Horne said she would not support the application or intervene for the company after CEO Craig Scroggie asked her to lobby for the project.

The company has applied for fast-tracked Victorian approval to expand its M3 data centre in Footscray to 10 hectares. The proposed facility would draw 225MW of power and operate continuously, placing a large computing project beside an established residential area.

A lobbying request, then a public rebuff

Scroggie emailed Horne on 3 September seeking her support or intervention while the planning minister considers the application. Horne replied that she did not consider it appropriate to lend her support. She also alleged that Scroggie had used artificial intelligence to draft the correspondence and that it contained basic factual errors. NextDC and Scroggie declined to respond to Horne’s letter and allegation when contacted.

I do not believe that it would be appropriate for me to lend my support to the application and nor do I wish to.

Melissa Horne, Victorian jobs minister, in a letter to Craig Scroggie

A faster route with limited tribunal recourse

Victoria has pursued data-centre investment, and large facilities can use a fast-tracked planning route. But the process has a clear limit for opponents: decisions by the planning minister cannot be appealed to the Victorian Civil and Administrative Tribunal.

Three facts shaping the approval fight

  • Scale: the proposed expansion covers 10 hectares and would draw 225MW continuously.
  • Process: the application is eligible for fast-tracked approval, with no tribunal appeal of a planning-minister decision.
  • Location: some homes sit within 15 metres of the data centre boundary.

Residents focus on the site’s local effects

Residents have raised concerns about the project’s community and environmental effects. The site is in an industrial zone, but some homes are close to its boundary. Labor MP Katie Hall, whose electorate includes M3, has opposed the expansion and raised constituent concerns about diesel generators during outages and regular system testing.

NextDC changes its lobbying approach

NextDC subsequently hired Ken McAlpine, a former adviser to the Brumby and Bracks Labor governments, to lobby the state government. The planning minister will decide the application. Horne’s refusal does not determine that outcome, but it adds a prominent political objection to a proposal already facing local resistance.

Sources

  1. theguardian.comDatacentre giant accused of using AI while lobbying for Victorian minister’s support for hyperscale factory

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