Anger is so great in the US against AI data centres that they can decide state elections and we're now seeing that wave of outrage building fast in Geelong and the rest of Victoria.

It’s not surprising local communities are so angry because they have been bypassed and have no say in whether they want to host these data centres or not.

We’re quickly reaching a deadlock and we need to find a pathway forward because there is no getting around the fact that we need data centres to power the nation’s economic growth.

Australia and Victoria are entering a period of unprecedented growth in digital infrastructure as investment in artificial intelligence, cloud computing and data storage accelerates. Data centres will be essential to supporting national productivity, innovation and economic growth, and the City of Greater Geelong welcomes investment that strengthens Australia's digital future.

But we need them on terms that the community feels comfortable with, and at the moment all communities are seeing are the significant negatives: noisy giant ugly boxes run by rich tech giants that guzzle huge amounts of electricity and water that could force up all Victorian’s bills.

For a start, let’s pause. Take a breath and re-design the approvals system with the community in mind, not the tech giants.

Second, put them in the appropriate places. Geelong has plenty of industrial-zoned land that would be perfect for data centres well away from homes and schools.

But what’s really missing from the debate is serious discussion about the opportunity to create enduring local community benefit funds by imposing an annual levy on every data centre for the lifetime of the data centre.

These funds would be quarantined for vital infrastructure in surrounding communities, such as sporting grounds, community arts centres and other much needed community infrastructure.   The funds could even go to critical emergency services our communities are crying out for.

The City of Greater Geelong has written Deputy Prime Minister Marles and the State Minister responsible Artificial Intelligence, Anthony Carbines, advocating for the establishment of a national Community Benefits Infrastructure Levy for Data Centres.

In the letter, Mayor Stretch Kontelj OAM makes the good point that while data centres represent significant private investment, they differ from many traditional industrial developments. Following construction, they generally create relatively few ongoing jobs, yet they can have enduring impacts through their demand on energy and water resources, large physical footprints, visual amenity considerations and associated infrastructure requirements.

As a result, communities are seeking greater assurance that they will share in the long-term value generated by developments located in their neighbourhoods.

There is a clear opportunity for governments to proactively address these concerns by establishing a Community Benefits Infrastructure Levy that applies to major data centre developments for the life of the asset.

Importantly, this proposal is not about creating barriers to investment. Rather, it is about strengthening community confidence and social licence by ensuring that the benefits of the digital economy are shared more broadly and visibly with the communities that support it.

There is already precedent for this approach in other sectors. Victoria's renewable energy framework recognises the importance of delivering social and economic value to host communities and encourages developers to engage meaningfully with communities and contribute to long-term local outcomes. The same principles of fairness, partnership and shared benefit should now be considered for the rapidly expanding data centre sector.

Greater Geelong is uniquely positioned to play a leading role in Australia's digital future. Our region offers strategic proximity to Melbourne, significant industrial land capacity, strong telecommunications connectivity and a growing reputation as a centre for innovation, advanced manufacturing and emerging technologies. As interest in data centre investment continues to grow across Victoria, including within Geelong, this is an opportune time to establish a policy framework that provides certainty for industry while ensuring host communities benefit from the infrastructure that will underpin Australia's future economy.

By acting now, governments can help avoid the community resistance increasingly being experienced in jurisdictions around the world, provide a consistent framework for industry and create a stronger partnership between developers and the communities in which they operate.