Tasmanian government releases draft expectations for AI data centres

The government’s draft expectations for data centres and AI infrastructure have been criticised, with Labor’s Janie Finlay saying it was “light on detail and filled with motherhood statements”.

The document comes as Firmus plans to build three AI data centres in Tasmania.

Its projects in Launceston and George Town have received council approval, while a development application for a third data centre at Latrobe is being considered.

Business, Industry and Resources Minister Felix Ellis said the government welcomes investment, but no project receives automatic approval or special treatment.

“These draft Expectations provide a clear framework to ensure our State remains at the forefront of innovation, harnessing Tasmania’s strengths while opening new frontiers in digital transformation," Mr Ellis said.

“They provide clear and predictable guidance to proponents, investors, industry, communities and other stakeholders, while supporting the responsible development of data centres and AI infrastructure that delivers enduring benefits for Tasmania.

“Our Government expects companies to maximise benefits for Tasmania, engage genuinely with communities, support our energy system, use water responsibly and comply with our approval processes.”

Mr Ellis said he wanted to see projects that could be sustained long term.

“As a State, we are backing our major industries that employ Tasmanians today and embracing the industries that can employ them tomorrow. We can support both by growing energy supply alongside new demand.

“These Expectations ensure new projects pay their way and improve the resilience of our utility infrastructure.

“Our Government will continue to ensure that data centre and AI infrastructure developments in Tasmania are in the best interests of Tasmanians.”

Energy and Renewables Minister Nick Duigan said Tasmania was an attractive place for investment.

“These industries present real opportunities for Tasmania through jobs, investment and economic diversification, but they must also deliver community benefits,” Mr Duigan said.

“Data centres and AI infrastructure can be heavy power users, and our government is focused on ensuring Tasmania has the right frameworks to support this growth in demand in a way that contributes positively to our energy system.

“This includes expecting new projects to support additional renewable energy generation, meet their share of network and connection costs, and operate in a way that protects energy security and grid stability.”

But Ms Finlay said the release of the draft expectations is an example of why Tasmanians are rapidly losing trust in the Liberal Government’s ability to manage Tasmania’s energy network and the economy.

“Instead of providing the clarity and accountability Tasmanians have been asking for as other state governments have done, the Liberals’ statement was light on detail and filled with motherhood statements,” she said.

“Tasmanian Labor supports innovation, investment, new industries and jobs – but most of all we support what’s best for Tasmania as a state.

“Tasmanian Labor remains open-minded when it comes to AI infrastructure, but with leadership like we’ve seen from the Liberals on this issue, it is little wonder community uncertainty is continuing to grow.”

Ms Finlay said the state’s renewable energy belongs to Tasmanians.

“Before any major project gets access to it, Tasmanians deserve to know what jobs, on-island investment and long-term benefits our state is getting in return, and how our premium Tasmanian energy resources, large energy users and retail, household and small business power bills will be affected.

“The Government needs to do a much better job taking Tasmanians through their decision-making process and clearly explaining how each project stacks up, and how Tasmania will get a return that supports jobs, both traditional and new industries, families, communities and our overall state economy.”

Greens Science and Information Technology Spokeswoman Tabatha Badger said the draft expectations had fallen short.

“This document merely discusses the policies which can be put in place,” Ms Badger said.

“It’s an admission that the Liberals have been asleep at the wheel when it comes to planning for the AI infrastructure developments they’ve been encouraging to come to Tasmania. 

“The expectations document clearly sets out and asks the very questions the Greens have been asking of the Liberals for months about how they’re going to regulate this industry and place obligations on it to ensure Tasmania benefits.

“And still we have no answers.”

The Greens have been staunch opponents of AI data centres in Tasmania.

“The Liberal Government have ushered in an age of AI infrastructure without consulting the community or ensuring their interests are protected,” Ms Badger said.

“It’s left our regulatory system completely unequipped to deal with assessing AI infrastructure. 

“When we have one company alone seeking 30% of our state's power for AI factories, and zero statutory guardrails in place specifically for AI infrastructure or around the allocation of finite energy and water resources, Tasmanians need more than a statement.

“They need action.”