Inquiry to examine ‘what, if any’ benefits data centres will bring

• A Tasmanian parliamentary committee has been established to investigate the construction and operation of AI data centres following community concerns regarding environmental impacts and resource management.
• Residents have raised significant objections to large-scale projects, such as Firmus Technologies’ proposed facilities, citing issues with noise levels, high water and energy consumption, and a lack of public consultation.
• Experts and advocates highlight that current planning laws are inadequate for major data hubs, emphasizing the need for enforceable regulations to ensure these private investments provide tangible benefits without transferring costs to local communities.

A Tasmanian parliamentary committee has been established to investigate the construction and operation of AI data centres following a surge in community concern. The inquiry holds a broad mandate, aimed at protecting public resources and the environment while ensuring that any new facilities deliver “tangible benefits” to the people of Tasmania.

The spotlight intensified on the industry recently due to Firmus Technologies’ ambitious expansion plans. The tech company is currently building a $2.1 billion “AI factory” in the Launceston suburb of St Leonards, with further development applications lodged for sites in Bell Bay and Wesley Vale. However, these projects have met significant resistance from local residents who are worried about noise pollution, excessive water and energy consumption, and a perceived lack of community consultation.

Dr. Ehsan Noroozinejad, a lead researcher in Resilient Construction and Infrastructure at Western Sydney University, suggests these concerns are well-founded. He noted that the sheer scale of modern data centres places immense pressure on local infrastructure, citing high electricity and water demands that could potentially drive up household utility bills. Other risks include diesel emissions, noise, land-use issues, and the fact that these massive facilities often provide relatively few ongoing jobs.

According to Dr. Noroozinejad, the primary challenge lies in ensuring that private investments do not shift environmental risks or infrastructure costs onto the public. He warned that Australia’s current planning and environmental laws were not designed to manage large, concentrated data centre clusters. While national expectations for the industry are generally positive, many remains voluntary rather than legally enforceable.

The push for the inquiry was led by the Tasmanian Greens, who have been advocating for greater oversight for months. Greens technology spokesperson Tabatha Badger indicated that the probe is a necessary step in addressing the regulatory gaps and social impacts of the state’s rapidly growing digital infrastructure.

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Original article and photo by "ABC News"