NextDC acquires 169-hectare Lovely Banks site in Australia, planning major AI-ready data center campus amid community concerns.

Australian data centre giant NextDC has acquired 169 hectares of farmland in Lovely Banks, Victoria, prompting concerns from local property developers and council officials about the impact on planned residential development in the region. The properties, located on Robbs and Evans roads, reportedly sold for $165m, with the Evans Road properties alone selling for more than $107m.

The acquisition sits in an ideal location for an energy-intensive data centre operation, positioned beneath high-voltage power lines and close to the Moorabool Terminal Station on Anakie Road. The site lies to the north of Victoria's Big Battery, a 300MW grid-scale battery storage project operated by HMC Capital, which has also secured a federal government tender to add a further 300MW capacity.

The NextDC landholding straddles the western boundary of Geelong's northern growth corridor. Of the 169 hectares, 50 hectares is zoned for rural use while 120 hectares falls within the future growth area—land earmarked for residential development. The properties have the potential to accommodate more than 2,000 new homes and lie adjacent to Westbourne Grammar School's future Lovely Banks campus.

Mark Whinfield, general manager of Newland Developments and the lead developer for the Lovely Banks Development Group, expressed concern about the acquisition. "It's in the middle of the growth area," he said. "Clearly it's not in keeping with what's envisioned in the growth area." Newland Developments leads the Lovely Banks Development Group, which is controlled by Costa Asset Management and holds the largest landholding in the future suburb. The overall Lovely Banks development is planned as a 15,000-lot masterplanned community.

Whinfield noted that the land purchase would remove 2,000 to 3,000 homes from the broader growth area, with significant flow-on effects. "It would impact on transport, community facilities, retail, so it would be a huge impact that needs to be considered," he said. He called on NextDC to engage in consultation and act as a good corporate citizen, emphasizing that after 15 years of planning, such decisions require transparency.

Ali Wastie, CEO of the City of Greater Geelong, stated that the council has growing concerns about data centre proposals in the region, particularly in areas designated for housing. "While council is not the planning authority for the data centre applications, we are engaged as a referral authority and are increasingly concerned about the implications of these developments for planned residential outcomes," she said.

While welcoming investment in data centres that support digital innovation and technology jobs, Wastie stressed they must be planned strategically and located appropriately. "They need to be in the right places, with a clear understanding of what they may compete with, particularly land needed for housing, employment, community infrastructure and other essential urban growth," she said. "It's also important to consider how they may impact our future energy and water services."

The council is particularly concerned that the land sale occurred within a future residential precinct structure plan area. "This land is identified for future housing, and large-scale data centre use is likely to undermine the extensive strategic planning work completed to date and compromise our ability to meet Geelong's long-term housing needs," Wastie said. Greater Geelong has a Plan for Victoria housing target of 128,600 new homes, with future residential PSPs expected to play a key role in delivering this figure.

Wastie has called for a co-ordinated, state-led approach to data centre development to ensure alignment with strategic plans and housing needs. She has also contacted the Municipal Association of Victoria's CEO to appeal for support in establishing a clear framework to guide councils in assessing these proposals. "Our aim is to better understand this growing industry and how the city can balance supporting data centre proposals with achieving our housing targets and creating attractive future communities," she said.

This would be Geelong's second data centre facility. NextDC contracted Kapitol to build its first facility—the 4.4MW GE1 complex on O'Briens Road, Corio—after paying more than $16m for the four-hectare site in 2024. The project received a fast-tracked permit through the state government's development facilitation program, with stage one expected to be completed in the second half of 2027.