Centuria’s Melbourne data centre expansion hits hurdle
Centuria has hit a planning hurdle in expanding a suburban Melbourne data centre campus – one of the priciest assets in its industrial REIT portfolio.
Monash Council this week rejected a proposal to replace two data-centre buildings at 1816-1832 Dandenong Road, Clayton, with a four-storey, 38-megawatt facility.
The 3.2 hectare complex with 10 buildings is fully occupied to Telstra.
Centuria acquired it with a 30-year leaseback in 2020 for $416.7 million.
Telstra recently separately agreed to surrender another part of the site for Centuria to construct a second data centre of up to 40-megawatts – also in planning.
Earlier this week realestatesource.com.au reported HyperDC applied to build a major data centre campus near Geelong.
AirTrunk, Galileo Group, Stockland and Zerra are amongst other developers planning assets of this type in the state.
Last week Sonya Kilkenny approved an eight-level data centre with almost half the area of the Rialto Towers at Truganina.
Expansion planned after expansion
The proposed four-level Clayton facility would cost $137m.
The proposed 38-megawatt facility would use more than three times the power currently consumed by Telstra’s two data centres – together they draw about 12.7-megawatts (continues below).
Centuria says it has lodged a DA for that second (40-megawatt) facility, with development possible after Telstra decommissions that section, currently anticipated around mid-next year.
Power allocation applications are also progressing.
Councillors defy planners
Council officers recommended the data centre application be approved with conditions.
However councillors voted against it on September 29, citing concerns including power demand, noise, heat and its proximity to homes.
The decision came a week after the state government proposed planning controls limiting data centres from being 150 metres near residential areas.
A Senate inquiry is also examining the impact of AI and data centres on communities, industries, water and energy, with its final hearing held this week.
Centuria can appeal the decision to VCAT. It could also bundle the applications and apply to the planning minister.
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