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Summary
The rapid expansion of data centres in Melbourne is sharpening the focus on a resource often overshadowed by the power debate: water. As global demand for digital infrastructure accelerates, particularly with the rise of AI, the question of whether Melbourne’s water systems can sustain parallel growth in housing and data centres is becoming unavoidable.
At the heart of the debate is whether housing and data centres are destined to compete for resources. Hammond believes coexistence is not only possible but essential: “They can, and must, co-exist. The future lies in shared infrastructure models, where data centres, industrial users and housing developments align around circular systems for water, energy and waste,” he said.
“TBH has worked on precincts where stormwater harvesting, district cooling and smart grid integration reduce load on shared infrastructure and unlock new development capacity,” he said. “The challenge is not competition, but coordination, and that is where long-term infrastructure planning and shared investment come into play.”
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