Data centres in Melbourne's west are coming under growing scrutiny over their safety and environmental impact. Concerns center on two issues: the fire risk they may pose and the air pollution linked to their operations. The facilities hold massive stores of diesel and lithium-ion batteries as backup power sources. That combination has drawn attention from both fire authorities and local residents.
Insiders at Fire Rescue Victoria have told the ABC they want more oversight of the sites. The agency's concern stems from the significant volumes of diesel and lithium-ion batteries stored at the centres. Multiple members familiar with data-centre planning applications raised the issue. They called for fire agencies to have greater oversight of the facilities.
At the same time, residents have reported a decline in their air quality. They link the worsening conditions to diesel emissions from the centres. According to residents, an influx of data centres and their dozens of backup diesel generators are sending exhaust fumes into Melbourne's night sky. One described the experience as being like standing next to an idling truck.
The way the facilities operate helps explain the emissions. Data centres run around the clock, every day of the week. They primarily rely on diesel generators in the event of power outages. The generators also need to be tested regularly for maintenance, and that testing releases diesel emissions.
One resident has tried to document the pattern. Yarraville resident Glen Yates has been measuring air pollution across the inner west for more than three years. He says he can clearly distinguish his data from before the data centres arrived and after. According to his observations, the pollution spikes on Sunday evenings once a month.
The scale of the diesel storage is also growing. NextDC's AI data centre in West Footscray currently has 40 backup diesel generators. The company wants to add another 60 generators to the site. It also plans to store an additional 1.2 million litres of diesel on site.
That expansion has raised alarms among safety authorities. In 2024, WorkSafe objected to the data centre's planning application, citing safety concerns for nearby families. Melbourne's west is already home to several data centres, with another on the way. The combination of rapid expansion and limited oversight is what has prompted the renewed calls for scrutiny.