Victoria’s government fast-tracked approval for NextDC’s second Melbourne data centre, known as the M4 project, without formal input from key utility providers, raising questions about the adequacy of planning and infrastructure assessments. The $2 billion facility, situated in Fishermans Bend’s Port Melbourne area, received development approval in January under the state’s Development Facilitation Program, which expedites eligible data centre projects.

The approval process took 75 days and proceeded despite the absence of formal responses from CitiPower, the electricity utility, and South East Water. Government documentation indicated that the site was considered “well serviced” by existing power, water, sewer, and telecommunications infrastructure, derived from its previous industrial use. Standard permit conditions were included to ensure future utility requirements could be accommodated without delaying the project.

NextDC paused the M4 project alongside other developments lacking customer contracts, following delays to its earlier M3 data centre in nearby West Footscray. The M3 project faced setbacks after the network company Jemena halted planned electricity infrastructure works due to community protests. NextDC spokespersons said they explored recycled water connections for the M4 facility but did not proceed because it was not commercially viable. The company emphasized that the M4 centre is designed with high-efficiency, closed-loop air-cooled technology that does not use water, in line with efforts to minimize environmental and social impacts.

Local community opposition has emerged, led by the Port Melbourne Action Group, which has organized public meetings and lobbied politicians. The group expressed concerns over what it called a “disturbing lack of public consultation” about the project’s potential effects on the adjacent Westgate Park. Issues raised include possible impacts from noise, cooling systems, water usage, drainage, and light pollution on the park’s wildlife and environment.

The M4 data centre aims to provide up to 150 megawatts of capacity, targeting hyperscale, artificial intelligence, enterprise, and government clients. Demolition work at the site began earlier this year. The project was publicly announced in June 2025 by former Victorian Premier Jacinta Allan and NextDC CEO Craig Scroggie, who highlighted the investment as a driver for job creation and tech workforce development.

Supporting documentation from Invest Victoria confirmed the financial viability of the development, which is expected to generate significant economic benefits for the Fishermans Bend Employment Precinct and Melbourne more broadly. Authorities view the data centre as a strategic asset to strengthen Victoria’s position in technology, research, and innovation sectors. However, the lack of formal utility provider feedback during the approval process and local opposition underscore the challenges involved in rapidly expanding critical digital infrastructure.