The home of the Ford Falcon may soon become Australia's AI engine room

For more than half a century, Ford’s Broadmeadows manufacturing plant was known as the home of the iconic Falcon.

“That was the manufacturing heartland of Australia,” said Basem Abdo, the federal member for Calwell in Melbourne.

Now, 10 years after the plant shut its doors, there are plans to turn the former Ford site into the engine room of Australia’s AI boom.

The $1.1 billion proposal for a massive data centre by Singaporean digital infrastructure firm Zerra DC — dubbed “Project Dune” — is predicted to draw 336MW of power across six buildings and will take 12 years to build.

Zoe, who lives across the road from the site and is a former employee at the Ford plant, is concerned about having the data centre on her doorstep.

“I had to ask my children what it is,” she told 7.30.

“They said something to do with batteries, and they will be working 24 hours a day.

“I don’t think it’s a good idea. I don’t know how long we’re going to live but it’s still not a good idea for us to live in this area [during the construction] and having all those things in and out every day. 

“It’s terrible.”

Fears of a ‘pathway to nowhere’ 

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.

In contrast, Zerra DC said 407 jobs would be created annually during the construction phase and 670 jobs created annually once the data centre was fully operational, boosting the Victorian economy by $158 million.

But Mr Abdo said many residents in his diverse community were concerned about the long-term job prospects from the data centre.

“People need to see that it offers a pathway to employment, a pathway to good, secure, well-paying jobs that offer them a career, which was what this site was about and which is what this site should be about,” he told 7.30.

“I will only support a project that is in line with our national standards that we’ve put forth clearly on a national level.

Mr Abdo said the project was yet to make the case for the same kind of long-term employment pathways that the region’s manufacturing industry provided.

“Are they good, secure jobs that provide long-term careers for people in our area?” he asked.

“This must not lead to a pathway to nowhere in terms of jobs and skills.”

‘Why is it being fast-tracked?’

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

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

AEMO’s report also predicted data centres would account for 13 per cent of the nation’s energy consumption by 2035.

But communities are asking whether the speed of approval for these projects is coming at the expense of scrutiny.

Campbellfield resident Anastasia Drapaniotis has taken a leading role in opposing the Project Dune proposal.

“I think a lot of the residents feel like they can’t do anything about it and I think that’s really horrible,” she told 7.30.

She told 7.30 she was not against data centre developments but was critical of the planning process.

“I would have to say … OK, bring these in, sure, but have stricter regulations,” she said.

“Why is it being fast-tracked? Why are they being approved so quickly when something like this would ordinarily take a very long time to get approved?”

Zerra DC lodged the development application for the Campbellfield project in April directly with the state government under special planning provisions for big projects and expects the “fast-tracked” decision within four months.

Victoria’s Environment Protection Authority lodged a formal objection to the proposal with the Department of Transport and Planning, citing “concerns over potential noise risks and the cumulative impacts associated with the overall site layout and development”.

Zoe and her husband John received the letter informing them of the proposal four days before the date on which Victoria’s planning minister was permitted to decide on the project.

At the bottom of the letter, it said: “The responsible authority will not decide on the application before: 28 July 2026.”

The planning minister is yet to announce a decision on the proposal.

“Not when you get a big overseas company coming in with billions of dollars.”

Company says it engaged with community

Zerra DC declined an interview with 7.30 but said in a statement: “We understand that a proposal of this scale can raise genuine questions and concerns for nearby residents and businesses, and we recognise that some people feel they have not had enough opportunity to be heard.”

The company said it began its community engagement program in late May and distributed information “to approximately 1,080 nearby households and 470 industrial businesses, supported by translated information, a dedicated project website, community survey, telephone and email channels, and direct visits to neighbouring businesses”.

Zerra DC said the redevelopment of the former Ford site represented “a highly-productive long-term use of industrial land”, adding that it had “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 amendments to the proposal have been made at this stage,” it said.

Victoria’s Planning Minister Sonya Kilkenny also declined an interview with 7.30, but a Victorian government spokesperson said in a statement: “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 provided up until a decision is made.”

The proposal bypassed local government and prompted Hume City Council, which includes the suburb of Broadmeadows, to pass a motion calling for a moratorium on data centre approvals in Victoria.

A further three councils, Melton, Brimbank and Maribyrnong, have since joined Hume in calling for a temporary halt on these types of projects.

Attracting data centres to Australia

While state governments court data centre investment, the federal government increasingly has 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 ensuring energy bills do not rise, water security is maintained, 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 legislated rules, the biggest facilities will be required to fund and use renewable energy, pay their share of grid and water infrastructure and meet community expectations.

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