Tasmanian council approves 288MW Firmus datacentre amid national regulatory shift

The George Town council in Tasmania has approved plans for a 288 megawatt artificial intelligence datacentre proposed by developer Firmus, despite significant local opposition. The council voted 6-1 to grant the go-ahead for the project at Long Reach, north of Launceston, on the former Gunns Pulp Mill site near the Tamar River. Councillors described the decision as reluctant, acknowledging the intensity of community sentiment while maintaining they were bound by existing planning laws.

The approval was reached on Tuesday, one day before Prime Minister Anthony Albanese announced a national regulatory framework for large datacentres. Locals argued the council should have waited for the new federal standards to be legislated, but councillors stated they could not delay the decision under the current planning regime. A petition opposing the centre gathered nearly 6,000 signatures, and more than 300 residents submitted formal objections to the council, raising concerns over energy use and the broader impact of AI infrastructure.

Councillor Heather Ashley described the vote as one of her hardest decisions in four years, noting that the council had to apply the law as it currently stands rather than waiting for future rules. Councillor Winston Mason added that while each member was very reluctant to make the decision, it was a necessary step under existing planning rules and regulations. The council’s agenda document indicated that many submissions pointed to commonwealth regulation, which was deemed outside the scope of the local council’s role in deciding the application.

The federal government aims to legislate a nationally consistent regulatory framework from early next year, setting minimum requirements for large datacentres. The new standards will cover energy, water, and land use, with the legislation designed to complement rather than duplicate state and territory planning processes. This move follows a steady stream of datacentre plans submitted to state and territory authorities for review, with the Australian Energy Market Operator reporting that 225 datacentres are currently in development across the country.

Firmus co-founder Oliver Curtis stated that the company supports the national expectations for datacentres and that its facilities are purpose-built to improve energy efficiency and minimise water use. A spokesperson for Firmus welcomed the council’s decision, saying the project would now progress through design, procurement, and construction planning. However, objections to the proposal can be lodged within 14 days of the decision, and petition organiser Anne-Marie Bastian said it was likely to be appealed by multiple residents who felt their concerns were dismissed.

The decision sets a marker for the national battle over datacentre regulation, particularly as other jurisdictions face similar challenges. In Victoria, the Environment Protection Authority issued its first-ever objection to a datacentre, opposing Zerra DC’s application for a $1.1 billion, 366 megawatt campus at the former Ford factory in Campbellfield. Greens senator Sarah Hanson-Young has called for a moratorium on new AI datacentres until the new federal rules are in place, warning that companies are pushing state governments for approval before the laws are fully established.