Melbourne has surged ahead of Sydney for the first time in the multibillion-dollar race for planned new data centres, as the state capitalises on old manufacturing land to attract the world’s tech giants.

But this unprecedented surge in projects, reshaping suburbs in Melbourne’s west and north-west, has sparked concerns about the impact of these power-hungry facilities on the state’s electricity and water supply.

Economic Growth Minister Danny Pearson told The Age the government wanted to accelerate planning processes to bring more data centres to the state, with cheaper land availability giving Melbourne the upper hand over Sydney.

He said much of the state’s vacant industrial land, a legacy of the manufacturing boom, already had good utility access, positioning Victoria well for the

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