{"id":893081,"date":"2026-09-15T17:02:14","date_gmt":"2026-09-15T17:02:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/893081\/"},"modified":"2026-09-15T17:02:14","modified_gmt":"2026-09-15T17:02:14","slug":"datacentre-giant-accused-of-using-ai-while-lobbying-for-victorian-ministers-support-for-hyperscale-factory-datacentres-australia","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/893081\/","title":{"rendered":"Datacentre giant accused of using AI while lobbying for Victorian minister\u2019s support for hyperscale factory | Datacentres &#8211; Australia"},"content":{"rendered":"<p class=\"dcr-1s160rg\">The Victorian jobs minister has accused one of Australia\u2019s largest datacentre companies of using artificial intelligence while requesting she lobby her colleague to approve a massive expansion of its \u201chyperscale AI factory\u201d.<\/p>\n<p class=\"dcr-1s160rg\">Correspondence between Victorian cabinet minister Melissa Horne and the chief executive of ASX-listed company NextDC, Craig Scroggie, reveals increasing sensitivity to community concerns about datacentres before the state election.<\/p>\n<p class=\"dcr-1s160rg\">NextDC has lodged an application with the state government for fast-tracked approval to expand its controversial <a href=\"https:\/\/www.theguardian.com\/technology\/2026\/may\/03\/ai-datacentres-australia-opposition\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">datacentre known as M3 in Footscray to cover 10 hectares<\/a>, drawing 225MW of power and running 24\/7.<\/p>\n<p class=\"dcr-1s160rg\">The datacentre\u2019s size and proximity to homes in Footscray has led to growing complaints from local residents, who argue the government has been too quick to approve developments without considering long-term impacts on the community.<\/p>\n<p><a data-link-name=\"standard link button Primary\" data-spacefinder-role=\"inline\" data-ignore=\"global-link-styling\" href=\"https:\/\/www.theguardian.com\/email-newsletters?CMP=copyembed&amp;CMP=emailbutton\" class=\"dcr-rh233e\" rel=\"nofollow noopener\" target=\"_blank\">Sign up for the Breaking News Australia email<\/a><\/p>\n<p class=\"dcr-1s160rg\">Some residential homes are within <a href=\"https:\/\/www.theguardian.com\/technology\/2026\/may\/03\/ai-datacentres-australia-opposition\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">15 metres of the datacentre\u2019s boundary<\/a>, which is zoned in an industrial area.<\/p>\n<p class=\"dcr-1s160rg\">Earlier this month, Scroggie took what multiple lobbying sources have described as an unusual approach by personally emailing the minister and encouraging her to back the project, which is being assessed by the planning minister.<\/p>\n<p class=\"dcr-1s160rg\">\u201cI refer to you correspondence on 3 September requesting that I intercede on behalf of NextDC Limited in the decision of the minister for planning \u2026\u201d Horne wrote.<\/p>\n<p class=\"dcr-1s160rg\">Horne, who is a factional ally of the state premier, Ben Carroll, replied with a blunt opposition to the expansion. This is despite the state government\u2019s long-term effort to attract more datacentre investment in Victoria.<\/p>\n<p class=\"dcr-1s160rg\">\u201cI do not believe that it would be appropriate for me to lend my support to the application and nor do I wish to,\u201d Horne wrote to Scroggie on Monday.<\/p>\n<p class=\"dcr-1s160rg\">NextDC has since employed a former adviser to the Brumby and Bracks Labor governments, Ken McAlpine, to conduct the company\u2019s lobbying with the state government.<\/p>\n<p class=\"dcr-1s160rg\">Horne\u2019s letter to Scroggie was published by Labor MP, Katie Hall, whose electorate includes the NextDC datacentre in Footscray. Hall is a long-term opponent of the datacentre\u2019s expansion.<\/p>\n<p><a data-ignore=\"global-link-styling\" href=\"#EmailSignup-skip-link-12\" class=\"dcr-76akua\">skip past newsletter promotion<\/a>Free newsletter |When needed<\/p>\n<p class=\"dcr-vf9hps\">Sign up to Breaking News Australia<\/p>\n<p class=\"dcr-djbwnz\">Get the most important news as it breaks<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/09\/1789491734_379_2998.jpg\" alt=\"\" loading=\"lazy\" decoding=\"async\" class=\"dcr-gx9601\"\/><\/p>\n<p id=\"EmailSignup-skip-link-12\" tabindex=\"0\" aria-label=\"after newsletter promotion\" role=\"note\" class=\"dcr-76akua\">after newsletter promotion<\/p>\n<p class=\"dcr-1s160rg\">In her letter, Horne accused Scroggie of using artificial intelligence to write his letter, citing what she alleged to be basic factual errors.<\/p>\n<p class=\"dcr-1s160rg\">\u201cI suggest that you review content produced by artificial intelligence more closely in the future,\u201d Horne wrote on Monday.<\/p>\n<p class=\"dcr-1s160rg\">Scroggie and NextDC were contacted for comment but declined to respond to Horne\u2019s letter and her allegations. Horne also declined to comment.<\/p>\n<p class=\"dcr-1s160rg\">Last month, Hall outlined her concerns about the impact of the NextDC datacentre and its expansion with the state\u2019s artificial intelligence minister, Anthony Carbines.<\/p>\n<p class=\"dcr-1s160rg\">In April, Hall wrote to the planning minister who will ultimately approve whether NextDC\u2019s expansion will be approved. She raised concerns for her constituents.<\/p>\n<p class=\"dcr-1s160rg\">\u201cThis includes the site\u2019s location within 500 metres of over 800 homes, a kindergarten, maternal and child health services, and Stony Creek,\u201d Hall wrote.<\/p>\n<p class=\"dcr-1s160rg\">\u201cAs a result, they are understandably concerned about the reliance on diesel generators during power outages, as well as the regular testing of these systems.\u201d<\/p>\n<p class=\"dcr-1s160rg\">In 2025, Scroggie posted a video of the M3 site <a href=\"https:\/\/www.linkedin.com\/posts\/craigscroggie_m3-m3-ai-activity-7356998323716698114-lYua?utm_source=share&amp;utm_medium=member_desktop&amp;rcm=ACoAAAfbDwABteOHo5YRP-7R086Hzv9ycHfLwdA\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">on LinkedIn<\/a> and said the speed and the scale of its expansion were \u201cstunning\u201d.<\/p>\n<p class=\"dcr-1s160rg\">\u201cWe\u2019re building Australia\u2019s largest hyperscale AI factory purpose-built for the new AI era of accelerated computing,\u201d he wrote. \u201cThis is how we build Australia\u2019s digital future: speed, scale, sovereign, sustainable &amp; secure.\u201d<\/p>\n<p class=\"dcr-1s160rg\">In Victoria, large datacentres are eligible for fast-tracked planning approval. Decisions made by the planning minister cannot be appealed to the Victorian Civil and Administrative Tribunal.<\/p>\n","protected":false},"excerpt":{"rendered":"The Victorian jobs minister has accused one of Australia\u2019s largest datacentre companies of using artificial intelligence while requesting&hellip;\n","protected":false},"author":2,"featured_media":893082,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[64,63,44],"class_list":["post-893081","post","type-post","status-publish","format-standard","has-post-thumbnail","category-australia","tag-au","tag-australia","tag-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/893081","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=893081"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/893081\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/893082"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=893081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=893081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=893081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}