Developer pauses Adelaide Hills AI data centre proposal after saying it 'misread' community feeling

The developer said it would instead undertake a 'longer-term and more comprehensive engagement programme' to address community concerns. The company is proposing a hyper-scale data centre with energy infrastructure on Collins Road in Tungkillo, about 41 kilometres east of the Adelaide CBD.

'We misread the strength of feeling about this proposal and acknowledge the first weeks of our early engagement created more questions than answers,' Tomassi said in a statement. 'We sincerely apologise for this, and we understand the disappointment and frustration it has caused. That is why we are pausing and intend to take a fresh approach to how we engage and how this proposal is tested.'

Tomassi told 891 ABC Adelaide the company had been contacted by more than 350 people and the community had submitted a consolidated list of 432 questions covering water, energy, noise, lighting, the night sky, traffic, bushfire, farming land, location and the local environment. 'There is such deep frustration amongst the community, which was not our intent at all, and I admit we misread these responses and the only responsible thing to do now is to pause and reset,' he said.

Two community consultation sessions scheduled for last month were postponed amid safety concerns, and locals convened their own protest meetings attended by a few hundred people. Tomassi said this month's sessions were now cancelled because 'it wouldn't be effective to meet 500 people and answer 432 questions in an emotive open forum'.

Tungkillo resident Magdalene Lippett, who opposed the centre, welcomed the pause. 'I think that Quantum DC need to get the hint that no means no,' she told 891 ABC Adelaide. 'Our community have done the research, we've spoken to the experts, we've had a look at the issues … and this just isn't the right place, the hills is not the right place for their data centre.'

Quantum DC said it would convene a panel of independent experts to review specialist studies and make their findings public. Tomassi said the development application would not proceed until 'we set up these groups to scrutinise this project appropriately', but did not rule out progressing the Tungkillo data centre in the future. 'It's a global issue in regards to social acceptance [of data centres] and I think South Australia is appropriately poised to take this opportunity if the framework is right,' he said.

Mid Murray Council Mayor Simone Bailey said the council had received one briefing from Quantum DC and further information would be discussed at an upcoming meeting. She said the council has 'big concerns' about the location, its proximity to a dark sky reserve, distance from a Country Fire Service station, limited access on unsealed roads, and how the centre might affect noise pollution and the water table.

Premier Peter Malinauskas said the 'whole episode' demonstrated the need to legislate a framework to regulate data centre development in the state. 'What is crystal clear to the government is that we desperately need as a state to make sure we have a strong and strict regulatory framework to ensure that data centres aren't being built, or even being proposed, in places they shouldn't be,' he said. The premier said legislation would ensure community interest was 'represented' and 'enforced' during any data centre development process.