Tasmania inquiry to weigh costs, benefits of new AI data centres

A parliamentary committee in Tasmania has been established to scrutinize the development and operation of artificial intelligence (AI) data centers across the state, responding to increasing public apprehension. The inquiry holds a broad mandate, intending to examine crucial factors such as safeguarding public resources and the environment, while also ensuring that Tasmanians derive "tangible benefits" from all AI and data facilities built within the state.

“

The inquiry has a broad mandate and will consider a range of factors, from how to protect public resources and the environment to making sure Tasmanians receive "tangible benefits" from all AI and data facilities constructed.

Data centers have recently come under intense scrutiny in Tasmania, particularly due to Firmus Technologies' ambitious plans to construct three new facilities. The company is currently building a $2.1 billion AI factory in St Leonards, with further development applications lodged for sites in Bell Bay and Wesley Vale. However, these plans have encountered significant backlash from local communities concerned about issues like noise pollution, excessive water and energy consumption, and inadequate consultation processes.

“

Data centres have been thrust into the spotlight in Tasmania in recent times with Firmus Technologies' plan to build three new factories in the state.

Ehsan Noroozinejad, a principal researcher at Western Sydney University specializing in resilient construction and infrastructure, highlighted that the sheer scale of these data centers "creates legitimate concerns." He pointed to their "very high electricity and water demand, pressure on household bills, diesel emissions, noise, land use and limited ongoing employment." Noroozinejad stressed the importance of ensuring that "private investment does not transfer costs or environmental risks to communities" and that data centers "must bring new capacity, pay their full infrastructure costs and leave communities measurably better off."

“

But it faced backlash from communities with concerns ranging from noise levels to water and energy use and a lack of consultation.

The Tasmanian Greens have been actively advocating for such an inquiry, emphasizing the need to adapt existing laws to effectively regulate these centers throughout their planning, construction, and operational phases. Greens technology spokesperson Tabatha Badger stated that the community's concerns are widespread, especially when "large AI factories pop in their backyard without adequate community consultation, consuming large amounts of energy and serious questions over water use allocation." Badger believes the inquiry is essential to provide a "holistic picture" and formulate recommendations for "guardrails" to protect Tasmanian people and resources as the industry expands.

“

He pointed to the "very high electricity and water demand, pressure on household bills, diesel emissions, noise, land use and limited ongoing employment".