Hydro Tasmania to decide on Firmus’s 450 MW request by the end of 2026
State-owned hydropower company Hydro Tasmania expects to make a decision by the end of 2026 on Firmus Technologies’ request for a long-term supply of 450 MW of electricity for three artificial intelligence data centres in Tasmania. As ABC News Australia reports, this amounts to up to 30% of the state’s current energy consumption.
Three data centres
Firmus is building an artificial intelligence data centre in Launceston, has approval for another facility at Long Reach in the Bell Bay Advanced Manufacturing Zone, and has submitted an application to build a third one in Wesley Vale in north-west Tasmania.
The company has a three-year contract for 104 MW of hydropower for the Launceston facility, but it needs a new agreement to ensure the operation of all three sites. According to Hydro Tasmania, the 450 MW request would make Firmus the state’s largest electricity consumer: the current largest consumer, Bell Bay Aluminium, uses 355 MW.
Need for new generation
Hydro Tasmania said the state’s energy system is currently “balanced”: electricity generation roughly matches consumption. At the same time, the company noted that meeting Firmus’s request would require the construction of new generating capacity in the state, including wind and solar power plants.
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According to Hydro Tasmania, the new facilities must be owned and operated by private companies, while Hydro Tasmania itself will not participate in their financing, construction or maintenance. One of the options under consideration is direct contracts between Firmus and wind and solar generation developers, under which Hydro Tasmania would make up for generation shortfalls when there is no wind or sun. Another option envisages an agreement between Firmus and Hydro Tasmania, which would separately contract producers of new renewable energy.
Firmus has pledged to create 2 MW of new renewable generation capacity for every 1 MW of electricity consumed. Hydro Tasmania said it would assess the company’s financial viability, the need for and timeframe for commissioning new generation, the commercial benefit of the agreement, and compliance with its obligations to Tasmania’s residents, including responsible management of reservoirs.
Consideration of the issue of artificial intelligence data centres is ongoing in Tasmania; submissions will be accepted until 21 September. Hydro Tasmania said it would also submit its materials.
