Victoria Data Centre Expansion

under construction and planning

An unprecedented data centre boom in Victoria is driving a surge in electricity demand, potentially forcing the state to rely more heavily on gas-fired power generation. The Australian Energy Market Operator forecasts an extra four gigawatts of gas-powered generation capacity will be required across Victoria and NSW to replace retiring coal plants, support electrification, and manage increased electricity demand from data centres. The state government is promoting Victoria as a data centre capital, with commercial construction growth driven entirely by data centres. However, key renewable projects like the Star of the South offshore wind project face delays, potentially pushing reliance on gas-fired power until at least 2037. The state and federal governments have approved new gas production licenses and exploration permits to boost local supply amid declining domestic gas production.