George Town Council has given the green light to Firmus Technologies’ proposed 288-megawatt artificial intelligence (AI) data centre at Bell Bay, marking a significant development for Tasmania’s industrial north. The council approved the project with a six-to-one vote on Tuesday, August 25, 2026, paving the way for one of the state’s largest data infrastructure projects, the ABC reported.
The facility is slated for construction on the former Bell Bay Pulp Mill site near Long Reach, within the Bell Bay Advanced Manufacturing Zone. This area is zoned general industrial, and the council classified the data centre as a “utilities” use under the Tasmanian Planning Scheme, according to local reports.
The extensive proposal includes two data halls, an office building, a substation, advanced cooling systems, and 276 backup diesel generators. It is designed to operate 24 hours a day, connecting to existing 220kV transmission lines via a new substation, Pulse Tasmania reported. A recirculating cooling system is planned to minimise water consumption.
The application generated considerable community interest and concern, with 349 formal representations submitted to the council. An e-petition opposing the project also garnered more than 5,000 signatures, AAP News noted. Residents raised various issues, including potential impacts on water and electricity consumption, noise, air and light pollution, bushfire risk, and broader environmental concerns.
However, councillors reiterated that their role as a planning authority was strictly limited to assessing whether the proposal complied with the Tasmanian Planning Scheme. Broader policy questions concerning energy, artificial intelligence, or national security were deemed outside their jurisdiction, the ABC reported.
Despite community apprehension, the Environment Protection Authority (EPA) reviewed the application and determined it did not require a full assessment, concluding that the risk of serious environmental harm was “very low or negligible”.
The approval comes with 19 specific conditions that Firmus Technologies must meet. These conditions address critical areas such as noise management, stormwater control, bushfire risk mitigation, air emissions, and the safe storage of hazardous materials.
This Bell Bay project is one of several AI data centres Firmus Technologies is pursuing in Tasmania. The company is currently constructing a 104-megawatt AI centre in St Leonards, a suburb of Launceston, and has also submitted an application for a 52-megawatt facility in Wesley Vale, according to reports.
The expansion of AI and data facilities across the state has prompted the establishment of a parliamentary inquiry to examine their implications, Pulse Tasmania reported. This inquiry aims to gather more information and potentially inform future regulations for such developments in Tasmania.
The George Town Council’s decision marks a pivotal moment for the region, balancing industrial development with community and environmental considerations as Tasmania positions itself in the rapidly evolving AI landscape.