A local council in Tasmania has reluctantly approved plans for a large datacentre despite significant community opposition, highlighting tensions ahead of the federal government’s introduction of a national regulatory framework for such developments.
On Tuesday, the George Town council voted 6-1 in favor of Australian developer Firmus’s proposal to construct a 288-megawatt datacentre at Long Reach, north of Launceston. The facility, described as an “AI factory,” is planned for the former Gunns Pulp Mill site near the Tamar River and has drawn strong resistance from residents. Nearly 6,000 people had signed a petition opposing the project, and over 300 submissions were made to the council, raising concerns about energy consumption, AI implications, and broader regulatory issues.
Council officials emphasized that many of the concerns raised fell outside their planning and approval remit. The council’s agenda noted that issues related to “commonwealth regulation” were beyond its scope. At the meeting, several community members urged the council to defer its decision until new federal standards were implemented, pointing to Prime Minister Anthony Albanese’s announcement of mandatory national standards for large-scale AI datacentres.
Albanese declared on Wednesday, following a meeting of the National Cabinet, that legislation would be introduced early next year to establish a consistent regulatory framework across Australia. The new rules are intended to set minimum requirements for energy, water, and land use, while complementing existing state and territory planning and approval processes.
Council members underscored their obligation to operate within current legal frameworks rather than await forthcoming regulations. Councillor Heather Ashley described the decision as among her most difficult during her tenure, explaining that the council was bound by existing guidelines. Councillor Winston Mason echoed the sentiment, noting the council’s reluctance but stressing the necessity to comply with established planning rules.
Residents opposing the project have 14 days to lodge appeals against the council’s approval. Anne-Marie Bastian, who initiated the petition against the datacentre, indicated that multiple appeals were expected, expressing frustration over the council’s dismissal of community concerns.
Firmus welcomed the council’s decision. Co-founder Oliver Curtis affirmed the company’s support for the forthcoming national standards, emphasizing a commitment to responsible energy and water use and delivering community benefits. He described their datacentres as purpose-built to maximize energy efficiency and minimize resource consumption.
Nationwide, datacentre developments continue to proliferate ahead of the new regulatory regime. The Australian Energy Market Operator recently reported that 225 datacentres are currently in development across the country.
Despite federal efforts to standardize regulation, some proposals are encountering opposition under existing state rules. In Victoria, the Environment Protection Authority issued its first-ever objection to a datacentre proposal, opposing Zerra DC’s plan to convert a former Ford factory in Melbourne’s north into a $1.1 billion, 366-megawatt campus. The EPA cited concerns over noise and cumulative impacts related to the site layout. A Zerra DC spokesperson stated the company welcomed the feedback and was working with acoustic consultants to address the issues.
Greens Senator Sarah Hanson-Young, chairing the federal parliamentary inquiry into datacentres, called for a moratorium on new AI datacentre approvals until the national rules are enacted, warning that companies were exerting pressure on state governments and communities to grant premature approvals. She suggested that, absent a pause, future laws might need to apply retrospectively.