Tasmanian council approves AI research lab, sparking debate over planning laws

The R&D facility will convert an existing warehouse at the former Wesley Vale pulp mill in the state's north-west into a 26-megawatt site for AI computing operations and research into alternative power sources during interruptions.

Under Tasmania's planning scheme, legislated in 1993, the application was not required to be advertised or voted on by councillors. Instead, it was approved by council staff and formalised by the general manager, a process outgoing mayor Peter Freshney said was standard for applications that fit the appropriate use class. However, Mr Freshney said the case highlighted the constraints of the planning scheme and demonstrated it was not fit for purpose. "It doesn't provide a rigorous and robust assessment of these emerging technology development applications," he told 936 ABC Radio Hobart.

Planning and Housing Minister Kerry Vincent defended the process. "It is entirely appropriate for developers to rely on the planning system when determining where to invest, and for local planning authorities to remain true to that system when assessing applications," he said. Mr Vincent said the government had been clear that major AI developments must deliver for the local community, and had released its draft statement of expectations for data centres and AI infrastructure. "The planning system shouldn't be politicised in the process," he said.

Local resident Erin Woodcock said she felt locked out by the process. “We don't really know what's happening right next door to us and what risks can be involved in that,” she said. “It's just all very unclear and worrying without the transparency of details.”

Firmus co-founder and principal engineer for R&D Jonathan Levee said the Wesley Vale facility would allow Tasmanian engineers to test novel operating strategies for AI infrastructure and help solve a challenge facing the industry globally. "Building on software we developed and patented in Tasmania, we're exploring how AI computing can be more flexible and respond to electricity grid conditions," he said. "And how technologies such as batteries could help reduce reliance on diesel generators."

Firmus expects the R&D facility to create about 70 jobs during construction, with 20 ongoing roles once operational. The company has stated it will use dry cooling for most of the year, with little or no water required for cooling under typical operating conditions, drawing primarily from rainwater collected on-site.

Separate to the R&D facility, Firmus remains committed to building an AI data centre at the site, also 26 megawatts, which the Latrobe Council has sought the state government to assess as a major project. The approval comes after Firmus abandoned its highly anticipated public offering on the Australian stock market last month, withdrawing plans after investor interest cooled. Just 5 per cent of the company's contracted data centre capacity was online when the company was trying to float.