Tasmanians expressed doubts about AI firm Firmus, now so have investors

Firmus Technologies, an AI firm, faced significant challenges when its planned debut on the Australian Securities Exchange (ASX) was cancelled due to weak investor interest. The company had been quietly constructing an AI data centre in Launceston, Tasmania, with plans to build two more facilities in the state. However, the Tasmanian community's opposition to AI data centres has grown, with women and younger people leading the push against them.

Despite Firmus' claims of cheaper AI tokens and water-efficient cooling technology, the company has struggled to establish a track record. Its only operational AI data centre is in Melbourne, and it aims to power three facilities in Tasmania, which would make it the state's largest power consumer. Investors, like the Tasmanian community, are yet to be convinced by Firmus' offerings.

The company's initial public offering, aiming to raise $7 billion, was cancelled, and it will now seek private funding. Neighbouring communities were outraged by the lack of community consultation for Firmus' Bell Bay project, leading to a community backlash. The local council approved the project but imposed a condition limiting the use of backup diesel generators, which surprised the Environment Protection Authority.

Firmus' other proposed Tasmanian facility at Wesley Vale has faced even more hurdles. The company initially sought to use farmers' irrigation water for cooling, a move that farmers found unacceptable. In the end, Firmus agreed to use rainwater and water it trucks in. However, the local council decided it prefers the state government to assess the project as a major project due to planning law inadequacies.

Firmus' Launceston facility is also behind schedule, with its planned operation delayed to early 2027. Aboriginal relics were discovered at the site, and construction was paused while Firmus sought approval to relocate them. The company pulled out of a federal parliament AI inquiry and raised eyebrows by stating that its renewable energy commitment could be interstate, not just in Tasmania. The Tasmanian government, however, remains supportive of Firmus and its projects.