Firmus Technologies accused of illegal excavation at proposed Tasmanian AI data centre site

Latrobe Council admits concern work exceeds approved forest practices plan; company says activities are 'general site maintenance'

By LineZotpaper
Published
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AI infrastructure company Firmus Technologies appears to have conducted illegal excavation work at its proposed 52-megawatt data centre site in Wesley Vale, Tasmania, without necessary permits, according to Latrobe Council. The council says the work may go beyond an approved forest practices plan, and the company has agreed to cease operations while assessments are carried out.

Firmus Technologies, which is seeking to build an AI data centre at the old paper mill site in Wesley Vale, north-west Tasmania, has run into trouble with local authorities after allegedly beginning excavation work without a permit.

Latrobe Mayor Peter Freshney said the council was concerned that some of the works might be occurring beyond the scope of the approved forest practices plan for the site. The approved plan allowed activities such as tree felling, stump removal, mulching and weed suppression. However, Freshney said the council was now seeing excavation to an extent not within that plan.

“If it’s outside of that then there’ll be a stop work issued,” Freshney said. “We’re seeking to understand and confirm whether or not that work is illegal.”

Freshney noted there were transportable buildings, piles of dirt and blue metal on the site. He said Firmus had agreed to cease work while the council conducted further assessments.

In a statement, a Firmus spokesperson said the works were part of general site maintenance, separate from the development application. “These activities do not require planning approval and will take approximately four weeks to complete,” the spokesperson said. “No main works associated with the broader projects will commence until all required approvals are in place.”

The council had earlier deferred a decision on Firmus’s development application for the 52-megawatt data centre, instead asking the Tasmanian government to assess it as a major project.

Freshney said the situation was causing “further angst” in the community, which already held concerns about data centres and evolving technologies. “Proponents more broadly need to be working with planning authorities and local government,” he said.

Firmus is also building two other AI data centres in Tasmania — in Launceston and Long Reach, in the state’s north.

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Analysis

Why This Matters

  • The dispute highlights growing tensions between the rapid expansion of AI infrastructure and local planning regulations in regional Australia.
  • It raises questions about how communities and councils can ensure proper oversight of large-scale data centre projects that often promise economic benefits but carry environmental and social impacts.
  • The outcome could set a precedent for how other councils and states handle similar proposals from AI data centre developers.

Background

Firmus Technologies is an AI infrastructure company with existing operations in Tasmania. It has proposed a 52-megawatt data centre at the former paper mill site in Wesley Vale. Latrobe Council deferred a decision on the development application in early September 2026, referring it to the Tasmanian government for assessment as a major project. The current controversy concerns activities at the site before any final approval has been granted.

Key Perspectives

Latrobe Council: Concerned that excavation work exceeds the approved forest practices plan. Seeks to determine if the work is illegal and may issue a stop-work order. Emphasises the need for developers to respect planning processes. Firmus Technologies: Maintains that the site works are general maintenance, require no planning approval, and will be completed in about four weeks. Asserts that no main construction will begin until all approvals are secured. Local community: Already anxious about data centres and evolving technologies; the unauthorised work has increased this concern.

What to Watch

  • Whether Latrobe Council confirms the work is illegal and issues a formal stop-work order.
  • The Tasmanian government’s response to the referral of Firmus’s development application as a major project.
  • The timeline for the remaining four weeks of site maintenance work and whether it proceeds without further incident.

Sources

Zotpaper

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