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Inquiry to examine 'what, if any' benefits data centres will bring

Firmus Technologies is seeking to expand its operations in Tasmania. (Supplied: Tasmanian government) With communities around the world grappling with AI data centres seeking to establish in towns and cities, the Tasmanian Greens have set up an inquiry to examine "what, if any, economic benefit" they will bring to the state. An expert says Tasmania's […]

By deepak · August 18, 2026 · 2 min read

Firmus Technologies is seeking to expand its operations in Tasmania. (Supplied: Tasmanian government)

With communities around the world grappling with AI data centres seeking to establish in towns and cities, the Tasmanian Greens have set up an inquiry to examine "what, if any, economic benefit" they will bring to the state.

An expert says Tasmania's "guiding principle" on data centres should be that they ultimately "leave communities measurably better off".

Submissions to the inquiry are open until September 21.

A Tasmanian parliamentary committee has been set up to examine the construction and operation of AI data centres across the state in the face of rising community concern.

The inquiry has a broad mandate and will consider a range of factors, from how to protect public resources and the environment to making sure Tasmanians receive "tangible benefits" from all AI and data facilities constructed.

Data centres have been thrust into the spotlight in Tasmania in recent times with Firmus Technologies' plan to build three new factories in the state.

Firmus has sought to allay community concerns over power usage at its proposed sites. (Supplied: Tasmanian government)

The tech company is currently constructing a $2.1 billion AI factory in the Launceston suburb of St Leonards and development applications have been lodged to build at Bell Bay in the state's north and Wesley Vale in the north-west.

But it faced backlash from communities with concerns ranging from noise levels to water and energy use and a lack of consultation.

Ehsan Noroozinejad, the principal researcher on Resilient Construction and Infrastructure at Western Sydney University, said it was the scale of data centres which "creates legitimate concerns".

He pointed to the "very high electricity and water demand, pressure on household bills, diesel emissions, noise, land use and limited ongoing employment".

Ehsan Noroozinejad says data centres "must bring new capacity, pay their full infrastructure costs and leave communities measurably better off". (Supplied: University of Western Sydney)

Dr Noroozinejad said Australia's planning and environmental laws "were not designed for large, clustered data centres".

The Tasmanian Greens have been advocating for months to set up an inquiry into AI data centres.

Source: Read the original article on www.abc.net.au