The Victorian government is currently reviewing an application from NextDC, an ASX-listed data center giant, to fast-track the expansion of its M3 facility in Footscray. Correspondence between Jobs Minister Melissa Horne and NextDC CEO Craig Scroggie indicates that the minister has raised pointed questions about the company’s deployment of artificial intelligence technology while it seeks state support for the project.

The expansion, described by the company as a 'hyperscale AI factory,' has become a point of contention as the state government navigates community concerns regarding the environmental and social impacts of such large-scale infrastructure. The documents reveal that the minister is exercising caution, reflecting a broader sensitivity within the cabinet regarding the rapid growth of data centers ahead of the upcoming state election.

While the company frames the facility as a critical piece of infrastructure for the digital economy, the minister’s inquiries suggest a desire for greater transparency regarding how the company’s internal AI operations align with its public-facing expansion requests. The situation underscores the friction between the state’s push for technological investment and the political need to address local opposition to industrial-scale developments in urban areas.