Ford factory legacy and a new data centre plan

By Mike Lorigan

7.30

Topic:AI

A picture shows the planned Zerra DC data centre on the old Ford factory land in Broadmeadows, Melbourne. (Supplied)

For more than fifty years, Ford's Broadmeadows plant was famous as the home of the well‑known Falcon.

"That was Australia's manufacturing heart," said Basem Abdo, the federal MP for Calwell in Melbourne.

Ten years after the factory closed, plans now aim to turn the old Ford site into the centre of Australia's growing AI industry.

Zoe and John live opposite the former Ford factory in Broadmeadows and are worried a data centre might be built on the site. (ABC News: Daniel Fermer)

Singapore's Zerra DC has a $1.1 billion plan for a huge data centre, called “Project Dune”. It would need 336 MW of power, spread over six buildings, and would take twelve years to finish.

Zoe, who lives across the road and used to work at the Ford plant, worries about the data centre being right next to her home.

"I asked my kids what it means," she said. She spoke on 7.30.

They said it involves batteries and will run all day and night.

I do not think this is a good idea. I do not know how long we will live, but building here and having constant traffic is not good for us during construction.

It's terrible.

Fears of a "pathway to nowhere"

The final car rolls off the production line at Ford in Broadmeadows in 2016. (Supplied: Ford Australia)

At its height, the Broadmeadows factory — which covered the size of 10 MCGs — employed more than 5,000 local workers who were producing generations of Ford vehicles.

Zerra DC said 407 jobs would be created each year while building, and 670 jobs each year once the centre is running, adding $158 million to Victoria's economy.

Mr Abdo said many residents in his diverse community were worried about long‑term job chances from the data centre.

People need to see that it offers a pathway to employment, a pathway to good, secure, well‑paying jobs that give a career, which was what this site was about and should stay that way," he told 7.30.

Basem Abdo says people in his community are worried the data centre will not give many long‑term jobs. (ABC News: Maren Preuss)

I will only support a project that follows our national standards that we have set clearly at the national level.

Mr Abdo said the project still needs to prove it can give the same long‑term job paths that the old factory gave.

Are they good, secure jobs that give long‑term careers for people in our area? he asked.

This must not become a pathway to nowhere for jobs and skills.

Why is it being fast‑tracked?

An artist's impression of part of the proposed Zerra DC data centre. (Supplied)

State governments in Australia, especially New South Wales and Victoria, are competing to win billions of dollars in data centre investment.

An Australian Energy Market Operator (AEMO) report this week shows the number of Australian data centres being built has more than doubled since 2025, from 97 to 225 this year.

AEMO also predicts data centres will use 13 percent of the nation's energy by 2035.

But communities wonder if the fast approvals are ignoring careful checks.

Campbellfield resident Anastasia Drapaniotis leads the opposition to Project Dune.

Anastasia Drapaniotis criticises the planning process for the data centre. (ABC News: Daniel Fermer)

I think many residents feel they cannot do anything about it and that is terrible, she told 7.30.

She told 7.30 she is not against data centres but criticises the planning process.

I would say, okay, bring them in, but we need stricter rules," she said.

Why is it being fast‑tracked? Why are they approved so quickly when normally this would take a very long time?

Community members protest against the proposed data centre in Broadmeadows. (ABC News: Maren Preuss)

Zerra DC filed the development application for the Campbellfield project in April directly with the state government under special planning rules for big projects and expects a "fast‑tracked" decision within four months.

Victoria's Environment Protection Authority lodged a formal objection to the proposal, citing concerns about possible noise and the overall site layout impacts.

Zoe and her husband John got the letter about the proposal four days before the planning minister could decide on it.

The letter said the authority will not decide before 28 July 2026.

The planning minister has not yet announced a decision on the proposal.

Not when a big overseas company comes in with billions of dollars.

Company says it engaged with community

A map showing the proposed Zerra DC project in Broadmeadows. (Supplied)

Zerra DC refused an interview with 7.30 but said in a statement: "We understand a project this size can raise real questions and concerns for nearby residents and businesses, and we recognise some people feel they have not had enough chance to be heard."

The company said it started its community engagement in late May and sent information to about 1,080 nearby homes and 470 industrial businesses, with translated material, a project website, a survey, phone and email contacts, and direct visits to neighbouring businesses.

Zerra DC said redeveloping the former Ford site is "a highly‑productive long‑term use of industrial land", adding it has "carefully reviewed the issues raised through community feedback and lodged a detailed response to submissions with the Department of Transport and Planning on 7 August".

No changes to the proposal have been made at this stage, it said.

Victoria's Minister for Planning Sonya Kilkenny. (ABC News: Maddison Cutajar)

Victoria's Planning Minister Sonya Kilkenny also refused an interview with 7.30, but a government spokesperson said: "Every proposal is considered on its merits — as this proposal is under consideration it would be inappropriate to comment further.

Submissions from the community and nearby businesses can be given up until a decision is made.

The proposal bypassed local government and led Hume City Council, which includes Broadmeadows, to pass a motion calling for a pause on data centre approvals in Victoria.

Three more councils – Melton, Brimbank and Maribyrnong – have joined Hume in asking for a temporary halt on these projects.

Attracting data centres to Australia

Anthony Albanese says Australia wants to attract data centres but "maintaining social licence will be essential". (ABC News: Matt Roberts)

While state governments court data centre investment, the federal government is setting its own expectations for what large data centres will deliver for Australia and the communities they are built in.

In a speech to business leaders yesterday, Prime Minister Anthony Albanese said "Australia is in a strong position to attract investment in data centres, but maintaining social licence will be essential".

That means making sure energy bills do not rise, water security stays safe, and locations are appropriate," he said.

Today, the prime minister took his plan to implement national mandatory standards for the industry to National Cabinet.

Under these rules, the biggest facilities will have to fund and use renewable energy, pay their share of grid and water infrastructure and meet community expectations.

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