Firmus Technologies to Build AI Data Center Trio in Tasmania, Aiming to Become State's Largest Power User
The Singapore-based company's three proposed sites would require approximately 400 megawatts (MW) of power—potentially 20% to 40% of Tasmania's current energy consumption.
The Proposal
Firmus Technologies is constructing an AI data center in Launceston's St Leonards suburb and intends to build two additional facilities in Bell Bay and Wesley Vale, Tasmania. The company has stated it aims to become the state's largest power user, with a combined power requirement for all three sites estimated at approximately 400 megawatts (MW).
Current and Proposed Facilities
St Leonards Facility
The first facility, located in the St Leonards suburb of Launceston, is currently under construction and is expected to become operational early next year. The center will house data center infrastructure and specialized computers using graphics processing units to produce "AI tokens" for generative AI tools. Firmus has signed a contract with Aurora Energy for 104 MW of power for this facility, sourced from hydro energy.
Proposed Additional Sites
Firmus is assessing two additional sites: Bell Bay, north of Launceston, and Wesley Vale, in the north-west. The company stated site selection is guided by power access, transmission connectivity, and policy alignment. The Latrobe Council has received a development application for the Wesley Vale site, which is intended to use part of the old paper mill site.
Energy Demands and Implications
The total power demand for all three sites is approximately 400 MW. The state government stated this would represent approximately 20% of Tasmania's current energy use, while other estimates put the figure at 40% of the state's current power supply without new generation. The state government stated this would not impact residential power prices and that the final capacity depends on regulatory approvals and commercial terms.
Energy analyst Marc White of Goanna Energy said that energy commitments to data centers could weaken the business case for energy trading projects, as limited capacity must be allocated to local businesses.
Climate Council Authority chair Matt Kean stated that the Firmus proposal and other data center proposals for Tasmania bring into doubt the business case for the proposed Marinus Link submarine cable connecting Tasmania to Victoria. A Marinus Link spokesperson said the increased data center investment demonstrates the necessity of the project, which would enable new renewable generation and allow hydropower assets to operate strategically.
A report by the Victorian Energy Policy Centre for the Bob Brown Foundation found that the rollout of batteries reduces Tasmania's competitive advantage in energy storage, further eroding the business case for Marinus Link. The report predicted higher electricity bills for Tasmanians if the project proceeds, and noted Tasmania has only a small exportable surplus of energy beyond current capacity.
Infrastructure and Connectivity
Firmus announced a partnership with SUBCO to build a new submarine fiber optic cable connecting Tasmania to mainland Australia. The cable is expected to be operational in the second quarter of next year.
Statements and Positions
- Energy Minister Nick Duigan: Revealed Firmus's plans during budget estimates. He dismissed comparisons with Boyer Paper Mill's power issues, stating Boyer's negotiations are about pricing, not availability.
- TasICT CEO Russell Kelly: Emphasized that AI companies must be transparent with communities to gain social license.
- Greens MP Tabatha Badger: Raised concerns about the power source for 400 MW and the need for state-specific regulation on energy, water, and employment obligations.
- State Government: Supports the National AI Plan and expects data centers to bring new renewable energy online. Firmus will undergo standard planning and environmental approvals.
Background
Tasmania is considered a site for AI infrastructure due to its cold climate and access to renewable energy. The federal government's National AI Plan includes expectations that AI companies will not increase energy prices and will support new renewable projects.