The George Town council's narrow approval of the massive AI datacentre at Long Reach, north of Launceston, has set a marker for the national battle over where and how to locate the energy-hungry facilities that power artificial intelligence. The council acknowledged it made the decision 'reluctantly', with the sole dissenting vote reflecting deep unease among residents.
The proposed Firous datacentre would consume 288 megawatts of electricity — a significant draw on Tasmania's grid, which is largely powered by hydroelectricity. Locals have raised concerns about environmental impact, land use, and the strain on infrastructure. The council's planning process was criticised as inadequate for a project of this scale, with opponents arguing that the existing regulations are not designed for AI factories, which require massive energy and water resources.
The timing of the approval is significant. A day earlier, Prime Minister Anthony Albanese secured agreement from state and territory leaders to develop national datacentre standards. While details of the agreement remain sparse, it signals growing federal recognition that the current patchwork of local planning rules is ill-equipped to handle the rapid expansion of datacentres driven by AI demand. The Albanese government has also faced pressure from environmental groups to ensure new datacentres are powered by sustainable energy, a point of contention in the Tasmanian case.
For Tasmania, the decision represents a potential economic boon — the datacentre could bring jobs and investment to a region seeking diversification — but also risks environmental and social costs. The George Town council's reluctance suggests they felt bound by existing planning laws rather than convinced of the project's merits. As national standards are developed, the Tasmanian case may become a precedent for how local councils handle similar proposals in the future.