NextDC Accused of AI-Generated Lobbying Efforts Amid Victorian Datacentre Expansion Push

The Guardian AI · 2026-09-15
NextDC Accused of AI-Generated Lobbying Efforts Amid Victorian Datacentre Expansion Push

Victorian Jobs Minister Melissa Horne has raised concerns over allegations that NextDC, Australia’s largest datacentre operator, used artificial intelligence to draft correspondence urging her to lobby on behalf of the company’s proposed hyperscale AI factory expansion. Internal communications between CEO Craig Scroggie and Horne reveal a strategic effort to navigate rising community opposition ahead of the state election, with claims that AI-generated content contained noticeable errors—raising questions about transparency and ethical lobbying practices in high-stakes infrastructure projects. The proposed $1.2 billion hyperscale facility in Melbourne aims to meet surging demand for AI computing power, positioning Victoria as a national hub for digital infrastructure. However, local residents and environmental groups have voiced worries about energy consumption, heat emissions, and grid strain. With NextDC already operating multiple facilities across the state, the latest expansion has intensified scrutiny on corporate influence in policy decisions. This controversy underscores broader tensions between technological advancement and public accountability. As AI reshapes industries from healthcare to finance, its use in political advocacy is emerging as a critical issue. The situation highlights the need for clearer disclosure standards when AI tools are deployed in government relations—especially when public funds and community well-being are at stake. The outcome could set a precedent for how tech-driven lobbying is regulated in Australia’s democratic processes.