A new hyperscale data center development is moving forward on the northern outskirts of Melbourne, Australia, as DoverDC has submitted a planning application for a 200MW facility near the South Morang Terminal Station. The project, designated SM1B, marks the company's second major data center initiative in the area, underscoring the rapid expansion of digital infrastructure in Victoria's outer suburbs.
DoverDC, through its entity Dover1 SM2 Pty Ltd, filed the application with the Victorian Department of Transport and Planning for the development at 165 Williamsons Road in South Morang. According to the company's website, SM1B will be a three-story, 200MW building situated on approximately 1.8 hectares of a larger 8.7-hectare site. The land is currently undeveloped and sits adjacent to both the South Morang Terminal Station and the South Morang Substation, a location chosen for its proximity to critical electrical infrastructure.
The new application follows DoverDC's earlier SM1A project, located less than a mile south at 525/535 McDonalds and 765 Plenty Roads. That development envisions a three-storey, 120MW data center on roughly one hectare of a 3.5-hectare plot. SM1A secured its planning permit in September 2024, with construction expected to begin in late 2026 or early 2027. The first phase of SM1A could become operational as early as 2028 or 2029.
The projects have not been without local opposition. A petition submitted to the Victorian parliament, calling for a halt to the McDonalds and Plenty Roads development, has gathered more than 4,600 signatures. The petition is sponsored by Aiv Puglielli, a Victorian Greens member of the Legislative Council. The Greens party announced plans last week to introduce legislation for an immediate moratorium on new data centers in the state, but the bill was defeated in a parliamentary vote.
DoverDC's leadership team also holds senior positions at property services firm Legacy Project Management, architecture and design firm Ewert Leaf, and counts former Macquarie Group executives among its ranks. An ASX-listed real estate investment group holds a stake in both projects, according to its most recent earnings presentation.
The growing data center pipeline is raising concerns at the local government level. The City of Whittlesea, which encompasses the South Morang area, this month called on federal and state governments to "establish a robust regulatory and planning framework for data center development, amid growing concerns about potential impacts in the municipality." The statement reflects a broader debate across Australia about balancing digital infrastructure growth with community and environmental considerations.
As Melbourne's northern corridor attracts increasing interest from data center developers, the outcome of DoverDC's applications could set a precedent for how large-scale digital infrastructure projects are reviewed and approved in the region. With SM1B now in the planning pipeline, the company is positioning itself to deliver substantial capacity to a market that continues to see strong demand from cloud providers and AI workloads.