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Firmus eyes two more AI data centres in Tasmania amid power questions

Firmus eyes two more AI data centres in Tasmania amid power questions

Plans for two additional AI data centres in Tasmania have been revealed, with operator Firmus looking at sites at Bell Bay and Wesley Vale. The proposals have raised questions about the state's energy supply, as the company could become Tasmania's single largest power user.

Plans for two further artificial intelligence data centres have been revealed in Tasmania, deepening the state's push into the digital economy. The operator behind the proposals, Firmus, is looking at establishing facilities at the old pulp mill site at Bell Bay and at Wesley Vale, adding to its existing footprint in the state. The disclosure has put a fresh spotlight on how much electricity such facilities would draw.

Energy Minister Nick Diagon told Budget Estimates hearings that Firmus wanted to set up the two facilities at the Bell Bay and Wesley Vale locations. The Georgetown and Latrobe councils have said they received development applications for the two sites. For its part, Firmus said it was exploring those two areas but stopped short of confirming the specific sites, leaving some uncertainty over exactly where the centres would be built.

The state's technology sector wants Tasmania to reap the benefits of the broader boom in artificial intelligence. At the same time, industry voices cautioned that companies entering the space need to be environmentally sustainable and transparent with the public. They framed the moment as part of a wider shift, with Tasmania going through a digital economy boom in which every sector is using more and more technology and more jobs increasingly rely upon it.

The scale of the energy required is at the centre of the debate. Firmus has already secured 104 megawatts of hydro energy from the state-owned retailer Aurora for its St Leonards project. However, the company would need significantly more power if the two additional sites go ahead, a prospect that would make Firmus the single biggest power user in the state.

To put the demand in context, an estimated 400 megawatts represents about 20 percent of Tasmania's current total energy use, or more than the combined demand of all Tasmanian households. That comparison has sharpened concerns about whether the state's grid can accommodate the new facilities without straining supply for existing consumers and other industries.

Exactly where the power would come from for all of those facilities remains a major open question. For any developments to go forward, there would have to be an understanding that there is enough energy to support a retail agreement, and without that no deal could happen. Firmus has previously said it would bring new renewable energy online, but it did not answer questions about what that would look like or when it would happen, leaving the timing of any new generation unresolved.

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