Hobart, Tas – Tasmania’s Parliament has initiated a formal inquiry into the construction and operation of artificial intelligence (AI) data centres across the state, aiming to weigh their potential costs and benefits for the community. The inquiry, established by the House of Assembly’s Standing Committee on Government Administration A, comes amidst growing community concern over the rapid expansion of these facilities.
The parliamentary committee commenced its inquiry on August 5, with public submissions officially opening on August 18 and due by September 21. This move follows months of advocacy from the Tasmanian Greens, who have highlighted concerns regarding the energy and water consumption of large-scale AI facilities, as well as the need for greater transparency and community consultation. Greens MP Tabatha Badger, who serves as Deputy Chair of the committee, described the inquiry as “incredibly welcome news” given the community’s concerns.
The inquiry’s establishment coincides with AI infrastructure company Firmus Technologies progressing plans for multiple large-scale facilities across Tasmania, including sites at St Leonards, Bell Bay, and Wesley Vale. These proposed developments are anticipated to significantly increase the state’s electricity load and have raised questions about water supply arrangements.
The committee has been tasked with a broad scope, including examining the construction and operation of AI data centres and recommending any necessary legislation or regulation. Key areas of focus include protecting public resources and the environment, improving planning arrangements, increasing parliamentary oversight and transparency, providing opportunities for community consultation, and ensuring Tasmania receives tangible benefits from these facilities.
Labor MP Brian Mitchell chairs the committee, which also includes members such as Labor MP Anita Dow, Liberal MPs Michael Ferguson and Mark Shelton, and independent MPs Helen Burnet and Professor George Razay.
Innovation and Digital Economy Minister Felix Ellis has indicated that a statement of expectations for data centres is due soon, emphasising that such developments must “pay their way on water and energy.” The state’s tech sector, represented by TasICT CEO Russell Kelly, has also called for a “clear benefit approach” to AI data centre development, stressing the importance of transparency, community consultation, and environmental preservation. TasICT supports the State Government’s commitment to developing a draft Tasmanian Statement of Expectations for Data Centres and AI infrastructure for consultation, building on national guidelines.
The inquiry aims to provide much-needed oversight on the expansion of AI data centres to ensure the Tasmanian community genuinely benefits from any such facility built in the state.
Readers can find more information and details on how to make a submission by visiting the Tasmanian Parliament’s website.