The Victorian jobs minister has accused one of Australia’s largest datacentre companies of using artificial intelligence while requesting she lobby her colleague to approve a massive expansion of its “hyperscale AI factory”.

Correspondence between Victorian cabinet minister Melissa Horne and the chief executive of ASX-listed company NextDC, Craig Scroggie, reveals increasing sensitivity to community concerns about datacentres before the state election.

NextDC has lodged an application with the state government for fast-tracked approval to expand its controversial datacentre known as M3 in Footscray to cover 10 hectares, drawing 225MW of power and running 24/7.

The datacentre’s size and proximity to homes in Footscray has led to growing complaints from local residents, who argue the government has been too quick to approve developments without considering long-term impacts on the community.

Some residential homes are within 15 metres of the datacentre’s boundary, which is zoned in an industrial area.

Earlier this month, Scroggie took what multiple lobbying sources have described as an unusual approach by personally emailing the minister and encouraging her to back the project, which is being assessed by the planning minister.

“I refer to you correspondence on 3 September requesting that I intercede on behalf of NextDC Limited in the decision of the minister for planning …” Horne wrote.

Horne, who is a factional ally of the state premier, Ben Carroll, replied with a blunt opposition to the expansion. This is despite the state government’s long-term effort to attract more datacentre investment in Victoria.

“I do not believe that it would be appropriate for me to lend my support to the application and nor do I wish to,” Horne wrote to Scroggie on Monday.

NextDC has since employed a former adviser to the Brumby and Bracks Labor governments, Ken McAlpine, to conduct the company’s lobbying with the state government.

Horne’s letter to Scroggie was published by Labor MP, Katie Hall, whose electorate includes the NextDC datacentre in Footscray. Hall is a long-term opponent of the datacentre’s expansion.

In her letter, Horne accused Scroggie of using artificial intelligence to write his letter, citing what she alleged to be basic factual errors.

“I suggest that you review content produced by artificial intelligence more closely in the future,” Horne wrote on Monday.

Scroggie and NextDC were contacted for comment but declined to respond to Horne’s letter and her allegations. Horne also declined to comment.

Last month, Hall outlined her concerns about the impact of the NextDC datacentre and its expansion with the state’s artificial intelligence minister, Anthony Carbines.

In April, Hall wrote to the planning minister who will ultimately approve whether NextDC’s expansion will be approved. She raised concerns for her constituents.

“This includes the site’s location within 500 metres of over 800 homes, a kindergarten, maternal and child health services, and Stony Creek,” Hall wrote.

“As a result, they are understandably concerned about the reliance on diesel generators during power outages, as well as the regular testing of these systems.”

In 2025, Scroggie posted a video of the M3 site on LinkedIn and said the speed and the scale of its expansion were “stunning”.

“We’re building Australia’s largest hyperscale AI factory purpose-built for the new AI era of accelerated computing,” he wrote. “This is how we build Australia’s digital future: speed, scale, sovereign, sustainable & secure.”

In Victoria, large datacentres are eligible for fast-tracked planning approval. Decisions made by the planning minister cannot be appealed to the Victorian Civil and Administrative Tribunal.