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Home » How the City of Stirling could become the first Australian council to ban data centres
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How the City of Stirling could become the first Australian council to ban data centres

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How the City of Stirling could become the first Australian council to ban data centres

August 10, 2026 — 2:57pm

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Perth’s biggest metropolitan council could soon be among the first in the nation to ban data centres in a bid to preserve its residential amenity.

The City of Stirling – Perth’s most populous local government area – will consider a notice of motion from councillor Suzanne Migdale on Tuesday night, urging the council to look into amending a local planning policy and reclassify data centres as being “a prohibited use”.

The City of Stirling could be the first local council in Australia to ban data centres.iStock

It could make Stirling the first local government in the country to take a hard stance against the data centre boom.

Migdale said the motion would benefit both the community and environment.

“The council should consider data centres as an ‘X’ use under LPS4 because they can create impacts that are difficult to reconcile with residential amenity, local environmental management, and sustainable planning outcomes,” she said in the report to council.

“Data centres are widely identified as energy-intensive facilities with significant environmental footprints, including large electricity demand, water use, and backup generator emissions.”

Stirling councillor’s reasons why data centres should not be allowed in the city

  • Data centres require substantial electricity, and their power demand can increase indirect greenhouse gas emissions where the grid is fossil-fuel dependent.
  • Many data centres use large volumes of water for cooling, which can place pressure on local water supplies.
  • Cooling systems, fans, and backup diesel generators can create continuous or intermittent noise that affects nearby residents and businesses.
  • Back-up generators and associated energy production can contribute to air pollutant emissions, including particulates and other combustion by-products.
  • Security lighting and 24/7 operational requirements can add to light spill and reduce local amenity.
  • Data centres can generate substantial waste heat and create an industrial character that is often incompatible with surrounding uses.
  • Large facilities may increase demands on local roads, utilities, and power infrastructure, with costs and disruptions potentially falling on the community.
  • Research has linked large data centres to community concerns around air quality, noise, water stress, and broader public health impacts.

If approved, Tuesday’s notice of motion would see the council request its chief executive to prepare a report for council’s consideration before an official vote would be made.

Stirling is a sprawling local government area that is largely residential, however it does include the industrial and business precinct of Osborne Park, which is home to the headquarters of WA iron ore miner Mineral Resources.

Data centres have been a contentious issue across WA this year.

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Mike Cannon-Brookes of Atlassian.

In May, residents in the neighbouring City of Swan claimed victory after plans for a controversial data centre neighbouring the Helena River were withdrawn following significant community pushback.

Sydney-based data company GreenSquareDC applied to build the $600 million, three-storey facility next to the Helena River Waldorf School, on two Aboriginal heritage sites and approximately 40 metres from the Helena River channel.

Public outcry against the proposal planned for lots 14 and 15 on Stirling Crescent was aired at several Swan council meetings, with concerns around environmental impacts, noise pollution and cultural insensitivity.

The city received a total of 1890 submissions regarding the proposal, with 1829 opposing the project. In the end the company formally withdrew its application.

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There are currently 15 data centres across WA, 13 of which are in the Perth metropolitan area.

In July, Prime Minister Anthony Albanese revealed plans for legislation around the expectations for large AI data centres, which would be introduced to parliament early next year.

“Our Australian standards will also set clear rules for large data centres: where they are built – and the power and water they use,” he said during a speech at the University of Sydney.

“We have a continent to ourselves, one of our big advantages. We have more than enough room for new data centres, without them competing with new housing. And we will work with every level of government to see common sense prevail.”

Albanese said the government would also create a legal obligation for the next generation of large-scale data centres to underwrite new power supply.

“To pay their full share of grid connection, so no costs are passed on to homes or businesses. And to put at least as much energy into our grid as they take out of it,” he said.

Other councils across the country have also faced issues with new data centre builds.

In NSW, councils including Penrith in Sydney’s west and Ryde – where the Macquarie Park cluster of data centres live – called on the government to hit pause on approvals of new data centres as part of a parliamentary inquiry into the impact they have on communities.

The councils requested the government freeze approvals until it sets rules to guarantee their power and water usage will have no effect on local communities.

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Local MP Tania Lawrence announced the development application for a proposed data centre in Hazelmere was withdrawn on March 13.

Meanwhile, Melbourne’s current data centre power draw could double if plans for a $1.1 billion campus on the former Ford car factory site get the state government’s go-ahead.

The Campbellfield proposal by developer Zerra DC has raised concerns with the community about noise, pollution and fuel storage.

Plans submitted directly to Planning Minister Sonya Kilkenny under special state planning provisions for big projects would mean that residents wouldn’t be eligible to oppose the development at a state administrative tribunal.

The “Project Dune” proposal would consume 336 megawatts of power once fully operational across six stages, matching the cumulative energy of the 55 data centres currently operating in Melbourne.

City of Stirling councillors will vote on the notice of motion at the ordinary council meeting on Tuesday night.

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