Is Tasmania ready for the AI data centre boom?

Tasmania is facing a critical juncture as Firmus Technologies proposes to build three AI factories, sparking significant debate about the state's capacity and the potential impacts of such large-scale developments. The company is already constructing its Project Southgate AI factory in St Leonards, near Launceston, and has submitted applications for facilities at Bell Bay and Wesley Vale.

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It's more about how many we have and what these data centres and AI factories are being used for.

However, the project has encountered resistance from some residents who feel inadequately consulted and are concerned about the substantial water and energy demands of AI factories. These concerns are being addressed by Firmus, which has committed to community engagement through drop-in sessions and webinars to explain their operations and gather feedback.

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So much of our day-to-day is very much reliant on digital technologies and AI that rely on these infrastructures being in place.

Bronwyn Cumbo, an AI futures researcher at the University of Technology Sydney, noted that the question for Australia is not whether it needs these facilities, but rather how many and for what purpose. She highlighted the increasing reliance on digital technologies and AI, which necessitate robust infrastructure like data centers.

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You can see in the way that they actually engage with communities, some companies are better than others, but ultimately, they will stick with the legislation and follow the rules

While the Tasmanian government aligns with federal expectations for data centers, the Greens are advocating for a moratorium on new developments until state-specific regulations are established. They argue that large AI projects should be subject to parliamentary oversight and required to regularly report their energy and water consumption. Tasmanian Greens technology spokesperson Tabatha Badger expressed that the community feels uninformed and lacks confidence in having a fair say in the future of AI and data centers in the state.

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We want to get together with the community and present and explain what we're doing.