Tasmanian Council approves AI research lab, sparking planning law debate

Firmus, a company specializing in AI data center construction, will transform an existing warehouse at the former Wesley Vale pulp mill in northwest Tasmania into a 26-megawatt facility. The facility will be used for AI computing operations and research into alternative power sources, particularly for handling interruptions.

“Our Wesley Vale facility will allow Tasmanian engineers to test novel operating strategies for AI infrastructure and help solve a challenge facing the industry globally,” stated Jonathan Levee, co-founder and principal engineer for research and development (R&D) at Firmus. “We’re exploring how AI computing can be more flexible and respond to electricity grid conditions, and how technologies such as batteries could help reduce reliance on diesel generators.”

Separate from this R&D facility, Firmus is also planning a 26-megawatt AI data center at the same site. The Latrobe Council has requested the Tasmanian government assess this project as a major development.

Last month, Firmus postponed its planned public offering on the Australian stock market due to a lack of investor interest. The company had initially aimed for a $44 billion valuation but withdrew its plans. At the time of the attempted float, only 5 percent of Firmus’s contracted data center capacity was operational.

Concerns have been raised by local residents regarding the transparency of the approval process. Erin Woodcock expressed feeling excluded, stating, “We don’t really know what’s happening right next door to us and what risks can be involved in that. It’s just all very unclear and worrying without the transparency of details.”

According to unconfirmed meeting minutes from October, the Latrobe Council received community questions about the facility’s size, location, power source, generator use, and the council’s ability to assess the project’s scope.

Outgoing mayor Peter Freshney acknowledged that the 1993 planning scheme is inadequate for assessing emerging technologies. “It doesn’t provide a rigorous and robust assessment of these emerging technology development applications,” he said.

Planning and Housing Minister Kerry Vincent defended the current process, emphasizing the importance of developers relying on the planning system and local authorities adhering to it. She also highlighted the government’s draft statement of expectations for data centers and AI infrastructure.

The new R&D facility is expected to generate approximately 70 jobs during construction and 20 ongoing positions. Firmus intends to utilize dry cooling methods, minimizing water usage, with an estimated annual consumption of 224,000 liters primarily sourced from on-site rainwater collection. Construction is slated to proceed seven days a week, with reduced hours on weekends.