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

A Tasmanian parliamentary inquiry is underway to assess the costs and benefits of new AI data centres in the state. This move follows increasing community concerns regarding the construction and operation of these facilities, which are becoming more prevalent across Australia. The inquiry will examine various aspects, including the environmental impact, economic advantages, and potential drawbacks such as increased energy and water consumption.

The Tasmanian Greens, the primary driving force behind the inquiry, advocate for a guiding principle that data centres should ultimately leave communities measurably better off. They argue that existing national planning and environmental laws, while positive, are not stringent enough to regulate these large, clustered data centres. The inquiry is set to run until September 21, with submissions already open.

Firmus Technologies is a leading company behind the push for new data centres in Tasmania. They are currently constructing a $2.1 billion AI factory in the suburb of St Leonards. Other developments have been proposed for Bell Bay and Wesley Vale. However, these projects have raised objections from local communities concerned about noise, water and energy use, and a lack of consultation.

Ehsan Noroozinejad, a principal researcher at Western Sydney University, highlights the significant electricity and water demand of data centres and the associated pressure on household bills, diesel emissions, noise, land use, and limited ongoing employment. While Australia's planning and environmental laws are not designed for such large facilities, Dr Noroozinejad believes Tasmania has a unique opportunity to become a responsible data centre destination due to its renewable energy resources.

The Greens are calling for stricter regulations and a moratorium on further approvals until these laws have caught up with the rapid expansion of the AI and data centre industry. In the meantime, the government has stated that it will not consider a moratorium, but will release its statement of expectations for AI data centres in the coming days. The inquiry's recommendations, while not binding, aim to ensure that data centres serve Tasmania and provide economic benefits for the state.