Tasmania urged to set mandatory conditions for AI data centres — ABC News Australia
Experts have called on authorities in Tasmania, Australia, to set mandatory conditions for artificial intelligence data centre projects so that they deliver public and economic benefits. As ABC News Australia reports, a government review of AI data centres received 152 submissions from the public and interested parties.
The University of New South Wales' Institute for Artificial Intelligence said that data centres alone do not create a local AI industry and do not guarantee lasting benefits for communities. The institute's director, Sue Ke, stressed that Tasmania's strongest negotiating position would be before facilities are approved, rather than afterwards.
Conditions for projects
Sue Ke proposed introducing a levy on large data centres to fund AI research, skills development and technological capabilities. She also recommended reserving a specified share of computing resources for Tasmanian researchers, universities, startups, small and medium-sized businesses, and non-profit organisations.
In her view, the obligations should apply not only to companies granted construction permission, but also to tenants and users of computing capacity. Proposed mechanisms for developing the local workforce include apprenticeship programmes, TAFE educational pathways, partnerships with universities and places for doctoral students.
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Pressure on the energy system
Several projects are being implemented in Tasmania. Firmus Technologies is building a data centre in Launceston, has approval for another facility in Long Reach in the north of the state, and is seeking approval for a project in Wesley Vale in the north-west. The local council has demanded that the company stop work at the Wesley Vale site until it receives permission. Parliament was also told that unnamed proponents are considering another six projects.
Once operational, Firmus' three projects will consume 444 megawatts of electricity, according to the source, making them the state's largest electricity consumer. Researchers at the Tasmanian Policy Exchange warned that part of the electricity transmission network is not designed for such additional demand, so project proponents should fund costly upgrades. They also pointed to the risk of costs for underused infrastructure if AI projects are delayed, scaled back or cancelled.
Proposal for oversight
The Digital Infrastructure Institute proposed creating a single register of approved facilities with annual reporting to parliament. It would include approved resource commitments, allocated volumes of electricity and water, actual consumption, and compliance status. Firmus said it supports consistent and transparent public reporting requirements on energy consumption, water, environmental indicators, employment, local procurement and benefits for communities.
